Social Security Wage Index +5.32%, COLA +3.2%

[G-Man]

Does your Social Security amount change in January once your 2023 earnings are known by Social Security?

Can someone answer this question.

Your 2023 earnings currently is not reported yet to the Social Security Department. However, I would think in January 2024, your 2023 earnings should appear on the Social Security website. So, here is the question.

If your 2023 earnings is one of your Top 35 earnings, do you now use the 2023 earnings in the Security Social calculation? If yes, when would your new PIA amount show up on the Social Security website?

 

[braumeister]

They don't know about your 2023 earnings until your tax return for this year is finalized.

 

[G-Man]

They don't know about your 2023 earnings until your tax return for this year is finalized.

So, at what point will the 2023 earnings be used in the Social Security calculation which will increase the PIA amount and be reflected on the Social Security website?

 

[braumeister]

Patience, grasshopper.

 

[TheWizard]

So, at what point will the 2023 earnings be used in the Social Security calculation which will increase the PIA amount and be reflected on the Social Security website?

Tas returns for 2023 income aren't due until 10/15/2024, with extension. So the SSA might not even try looking at them until then.

Then there's the question whether your 2023 income replaces a lesser indexed income year from your top 35 years.

So I don't have a good answer for you...

 

[USGrant1962]

Tas returns for 2023 income aren't due until 10/15/2024, with extension. So the SSA might not even try looking at them until then.

Then there's the question whether your 2023 income replaces a lesser indexed income year from your top 35 years.

So I don't have a good answer for you...

Your 2023 SS earnings will show up on your SS record shortly after your tax return is filed. Within a month after, in my experience.

 

[jazz4cash]

Getting harder to stay on the sidelines. Might just jump into the pool before 70

 

[Exchme]

So, at what point will the 2023 earnings be used in the Social Security calculation which will increase the PIA amount and be reflected on the Social Security website?

Even if your 2023 earnings were at the maximum taxed amount ($160,200) and replacing a zero in your top 35 years of indexed earnings, it would be an increase in your AIME of $381. Most folks on this forum probably have indexed earnings above the 2nd bend point in the PIA formula ($6721/mo AIME). Above that and your PIA is only increased by 15% of the amount, so $57/month. Obviously if you are replacing a non-zero year, the difference is even smaller.

Certainly nice to have, but not exactly life-changing money.

 

[G-Man]

Even if your 2023 earnings were at the maximum taxed amount ($160,200) and replacing a zero in your top 35 years of indexed earnings, it would be an increase in your AIME of $381. Most folks on this forum probably have indexed earnings above the 2nd bend point in the PIA formula ($6721/mo AIME). Above that and your PIA is only increased by 15% of the amount, so $57/month. Obviously if you are replacing a non-zero year, the difference is even smaller.

Certainly nice to have, but not exactly life-changing money.

Got it. Thanks for the feedback.