The big news of late is that Social Security recipients will receive their biggest benefits boost in over 40 years next year. The 2023 cost-of-living adjustment (COLA) will be 8.7 percent. That’s a significant increase over 2022’s 5.9 percent — largely because of skyrocketing inflation.
But, as Yahoo! Finance reports, there are a couple of other big changes coming in 2023 that current and future retirees need to know about:
- New 401(k) Limits – In 2023, individuals can set aside up to $22,500 or $30,000 if you are 50 or older thanks to special catch-up contributions.
- IRA Limits – This year’s limit for IRA contributions was $6,000, but it increases to $6,500 in 2023. The catch-up contribution total remains $1,000.
The Seniors Trust is devoted to improving Social Security for all retirees. It wants Congress to enact the Social Security Expansion Act which will establish a fair COLA, increase benefits, create a strong and long-lasting trust fund, and guarantee every retired worker receives adequate Social Security benefits they have earned.