2023 Social Security Updates: What NJ Residents Need to Know

Federal Benefit Rates, Monthly Earnings Amounts, and 2024 Cost-of-Living Adjustments Impacting Social Security Recipients Explained.

In a slew of changes for 2023, the Social Security Administration has adjusted amounts for Substantial Gainful Activity (SGA), Federal Benefit Rate (FBR), and Trial Work Period (TWP) Months, among others. These adjustments are set to impact a wide swath of residents in Morristown, Morris County, New Jersey, and across the Country.

Who is Affected

These changes primarily affect persons with disabilities (How You Qualify), eligible individuals and couples receiving Supplemental Security Income (SSI), students under age 22, and Medicare and Medicaid enrollees.

What Are the Key Changes

1. Substantial Gainful Activity: The SGA for persons with disabilities other than blindness is now $1,470/month. For those who are blind, the amount is $2,460/month.
2. Trial Work Period Months: The new monthly earnings amount is $1,050/month.
3. Federal Benefit Rate: SSI rates are $914/month for individuals and $1,371/month for eligible couples.
4. Student Earned-Income Exclusion: Earnings up to $8,950/year won't affect SSI eligibility or benefits for students under 22.
5. Medicare and Medicaid: Updated monthly premiums and state threshold amounts for 2023.

Effective immediately, these changes have been rolled out for the year 2023. Details for state-specific Medicaid thresholds are available online.

These adjustments are generally in line with inflation and aim to accurately reflect the cost of living.

How Will It Impact the Future

Based on July's inflation report, it is likely that there will be around a 3% Cost-of-Living Adjustment (COLA) in 2024, potentially raising the average Social Security retirement benefit by approximately $55/month.

• Consensus on COLA: There is a broad agreement among experts that the 2024 COLA will be around 3%.
• Medicare Costs: A rise in Medicare Part B premium in 2024 would offset part of the COLA increase for about 70% of Medicare enrollees.
• Inflation and Volatility: Although Social Security benefits generally keep pace with inflation, they can lag during periods of extreme volatility.

These changes to the Social Security structure for 2023 are of immediate relevance to the community, especially those relying on federal benefits. Understanding these adjustments can enable residents to better plan for the future, taking into account the predicted changes for 2024.