Broker Check

Social Security – 2023 Updates

October 25, 2022

Prashant Sabapathi and Michael Hartzell, Investment Advisor Representatives from Elite Income Advisors, speak regularly on the topics of Social Security, retirement benefits, and tax planning. Prashant can provide personalized Social Security earning projection reports and comparisons to clients and community members who request a Retire Smart Roadmap as well in privately scheduled meetings.

These seminars are designed to teach you more about the landscape of retirement planning, and to help you prepare to speak with your financial planner and accountant as you examine the components to include in your financial strategy (leading up to, or in, retirement). Below is a summary of a few updates to note.


Social Security benefits* are adjusted for inflation annually, with an increase called the Cost-of-Living Adjustment (COLA). The COLA for 2023 has been set at 8.7%, which is the highest increase since 1981 (11.2%, which was the highest rate ever); the lowest rate increase that has been seen is 0.0%, which has only occurred 3 times** over the last 48 years.

Delaying SS Election

Waiting another year or two to retire can increase your Social Security earnings, as each earning year that exceeds income in your highest 35 years will replace your lowest earning year and shift your Social Security (SS) income outlook upwards. COLA raises are factored into your expected benefit calculations starting at the year you turn 62, in addition to the effect of postponement up until age 70.

Electing to take SS early can decrease your benefit amount, and the COLA adjustment will be calculated off of the reduced amount, not the amount due at full retirement age*** or later. However, the strategy for when to begin receiving Social Security benefits involves considering several factors and is a highly individualized decision. Taxes and assistance program earning thresholds have not been adjusted yet to coincide with COLA changes, so benefits and tax bills may include some surprises for many.

To learn more about tax implications of working while receiving Social Security or how to minimize tax load while receiving Social Security, please attend one of our seminars. To receive assistance with developing your own plan, please reach out to our client service team to schedule a meeting with an advisor.