Changes Coming to Social Security in 2023

social security planning

Social Security is supposed to be a sure thing for everyone who pays into it. If there’s one thing the last few years have taught Americans, though, it’s there are few sure things. There are some big changes coming to Social Security in 2023. If you aren’t ready, those tweaks can negatively impact your retirement plans. Here is what you need to know about the upcoming Social Security changes and what you can do to deal with them.

What Stays the Same?

There are numerous changes in play this year, but the debate as to whether the age of retirement should be raised or lowered remains at a standstill. The full retirement age remains the same at 67 years old, a change made in 2022.

Of course, this does not mean that you must wait until 67 years old to begin pulling your Social Security. The minimum retirement age is still 62 years old. However, withdrawing your Social Security checks at 62 will result in a lower payout than if you were to wait until full retirement age (but more on that as we go).

A Change in Cost of Living Adjustment

Due to the rise in inflation over the last year, it is expected that the Cost of Living Adjustment, or COLA, will go up. This increase is considered historic. If you wait until full retirement age (FRA) to start pulling your social security check then you can expect your monthly check to increase by $282 to $3,627 a month. If you do not wait to achieve FRA then you will likely only receive an increase of $140 a month.

In theory, more money is a good thing, but the truth is that the increase may not be enough to meet the challenge of inflation. Due to consistent inflation, Social Security benefits have lost roughly 40% of the buying power that they once had. Times are tough all around, but they should not be tough during one’s retirement. Unfortunately, this trend shows little sign of slowing down in the long-run.

Playing the Long Game for Greater Reward

Waiting until the full retirement age of 67 is not required to start drawing social security, but may be the best option for some to consider. Waiting until the full retirement age could net you a delayed retirement credit of 8% of your yearly benefits earnings on top of the maximum benefit earnings amount. That’s a significant chunk of change.

The longer you wait past the minimum retirement age of 62, the more money you stand to collect. It is understandable this isn’t a possibility for all people who reach retirement age, yet waiting to any degree can still net you more money. It is simply a matter of how long you feel you’re capable of putting off retirement.

You also have the option of working while pulling your Social Security. This is a good option for those who need to work yet also require the assistance a monthly check can provide. Be warned, however, you cannot make more at your job than your benefits provide, or they can be pulled from you.

Higher Earnings, Higher Taxes

If you earn more money, then you will have to pay more money into income tax. Prior to this year, the maximum amount of money that was subject to Social Security taxation was less than $150,000 ($147,000 to be exact). This year, employees who make upwards of $160,000 can expect to pay upwards of $13,000. That’s because Social Security funding comes primarily from payroll taxes.

What You Should (Probably) Do

If the new changes to Social Security have you worried, take comfort knowing there are things you can do to put yourself in a better position.

Save Save Save

One of the first things you can do is prioritize bulking up your savings. It is understandable that it putting back money in times of high inflation can be difficult, but if you can bite the proverbial bullet, you just may be able to set yourself up a nice nest egg to go with your Social Security benefits.

Keep Your Eye on the Economy

The best thing that you can do to use your Social Security to its fully potential is to stay vigilant about the state of the economy. Staying in touch with economic trends can help you be able to better allocate the use of your Social Security checks.

Have a Plan

If you want to make your Social Security checks stretch, then you need to have a plan for your money. Some people have enough money from their Social Security checks to cover their needs comfortably, while others may find that they need to get a little more creative. Whichever side of the financial spectrum you fall on, it is imperative that you have a plan.

Creating a monthly breakdown of what you will need during your retirement is imperative. Without any kind of a plan, you may find that it becomes difficult to manage your checks on a month-to-month basis.

Reach Out For Help

If you find that the changes made to Social Security have made things more confusing than necessary, do not be afraid to reach out for help. If you bank with a major banking network then there is a good chance that your bank offers financial advisory services. A financial adviser can help you navigate the murky waters of Social Security changes, both before changes occur and after they have taken effect. They can help you put together both a long-term and a short-term plan for your Social Security payments.

How to Write a Financial Planning Essay

A woman writing a financial planning essay

Whether you’re running a company or managing your personal finances, organizing finances can be daunting. Some people are able to make it week to week and month to month without doing much financial organization. They’re seemingly able to just work with what they have and not worry too much about staying organized. This is a rare skill.

If you have financial goals that you wish to achieve, then writing a financial planning essay is absolutely essential. A good financial plan has to go beyond merely jotting down what money you have coming in and what you have to spend it on. If you want to make any real progress in getting ahead, then you need a plan that goes in depth. You need a financial planning essay. Here you’ll learn everything you need about how to write a financial planning essay and what one can do for your financial future.

Why Write an Essay?

If you have money, you likely already have some idea of how you need or want to spend it. So, why would you want to write an essay, something most people don’t do past college? The answer is simple: clarity of short-term and long-term financial goals.

When writing a financial planning essay, you’re putting down in detail what your financial plan is. You’re also defining the manner in which you will carry the plan out. It’s one thing to sit down and list your expenses and your projected income, but it’s easy for spending to get out of control without a more meticulous plan in place.

Writing in essay form helps you keep track of how much money you have coming in. You also keep track of where it came from. By sitting down and carefully describing where your money is coming from and how, when, and where you are going to spend you are being explicitly clear in your goals.

What Information Goes in a Financial Planning Essay?

Financial planning is a process that requires you to know how much money you have coming, what expenses you have, and when that money must be paid. It also enables you to factor in money and assets that are already available to you.

Weighing Options

If there is an expense your current budget does not cover, then you need to address it in the essay. Maybe you have goods around your home that you could pawn? Can you take out a loan? Maybe you can borrow money from a friend? Any means by which you can bring in money should be listed in your essay.

If you include borrowing money in your financial essay you need to also include how you plan to pay it back. If you take a loan that requires you to pay in installments, you need to feature those installments as part of the essay.


When creating a financial planning essay there is no real “right” way to go about organizing the content. However, as with any essay, if you want it to make sense it must have some form of structure. Here is just one potential financial planning essay structure that you can utilize:

  • Money goals – In this paragraph, you should state explicitly what your financial goals are and in what time frame you intend to meet them.
  • Current funds and assets – This is where you list your current amounts of money or assets that can be leveraged to get money.
  • Income – This is where you state your income and the intervals at which you receive it.
  • Outgoing expenses – This is a detailed account of what bills and expenses you need to pay in the given time frame that you have chosen. You must also outline how exactly you will pay each of these expenses.
  • Alternative means of income – This is where you detail any alternative means of bringing in money. These are sources you perhaps had not yet considered in your goal-making. Perhaps you have decided to take on a side hustle? Maybe you are thinking of donating plasma for money? Maybe you are considering having a garage/yard sale? Perhaps a family member owes you some money? Whatever alternative money you could have could make a huge difference in helping you achieve your financial goals in a more timely manner.
  • Goal implementation – This paragraph is arguably the most important one. Here you break down what your goals are when you wish to accomplish them, and how you intend to do it. Putting your goals and your plans for carrying them out is critical because you are giving yourself a perfect guide for how to achieve your financial goals.

Holding Yourself Accountable

The biggest reason for writing a financial planning essay is to hold yourself accountable. When your funding comes in, the essay is your point of reference to keep on track. Think of it as a map that shows you exactly where your money needs to go.

On the other hand, the essay also serves as a means to cushion the blow of any potential disappointment. Life happens, and sometimes when life happens you have to spend money. When this happens you can look to your essay to remember. Remember that the circumstances that set you back were unforeseen.

At the end of the day, all you can do is stick to your financial plan as best you can. It is okay to be a little tough on yourself when you misspend, but you should never beat yourself up over it either. Work your plan to the fullest of your ability. Only then you will be able to meet your goals.