The Social Security Administration just announced the most significant cost-of-living-adjustment since the 1980s. In this article for The Street, Covisum® Founder and President, Joe Elsasser, CFP® outlines how the 2023 Social Security cost-of-living-adjustment could impact retirees.
"People should consider the COLA in the context of their overall retirement income. Tax brackets will also increase coming into next year, though likely not by as much as Social Security benefits because tax brackets use a slightly different measure of inflation. A larger Social Security benefit, combined with higher amounts that fall into each bracket creates additional opportunities to create tax efficiency by managing the amount of IRA withdrawals relative to Social Security benefits. By blending withdrawals from IRAs with Social Security and other savings, many middle and upper middle-income people can actually avoid tax on their Social Security benefits entirely."
Read the article in its entirety here.
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