Skip to main content
Bridge Michigan
Michigan’s nonpartisan, nonprofit news source

Your source for Michigan news in 2023 and beyond

Bridge Michigan’s year-end fundraising campaign is happening now! We have big plans for 2023, including holding elected officials accountable for promises on the campaign trail, following the latest developments in public health, the Great Lakes, K-12 and post-secondary education, helping you understand and prepare for a turbulent economy and much more. Will you help us achieve these goals? Your tax-deductible support makes it possible!

Pay with VISA Pay with MasterCard Pay with American Express Pay with PayPal Donate

Social Security increase: 2.2 million in Michigan to get $140 more per month

social security card
Increases in Social Security payments are tied to inflation, which has soared to 40-year highs this year. (Shutterstock)
  • This is the highest increase in Social Security benefits in more than 40 years
  • Recipients can expect an average of $140 more per monthly payment
  • The increase is tied to rising prices of goods and services

Social Security payments will increase an average of $140 per month starting in January for 2.2 million Michigan residents receiving the benefit.

On Thursday, the U.S. Social Security Administration announced an 8.7 percent cost of living increase, the biggest increase in more than four decades. In Michigan, more than a third of households, 34.5 percent, receive the benefits, according to the latest U.S. Census Statistics.

Sponsor

That's well above the 31 percent of households nationally. 

Related:

On average, those Michigan households receive just over $22,000 a year in benefits. The 2023 increase will add roughly $1,900 to the annual income of each household.

The increase comes as inflation rose 0.4 percent in September, boosting the annual rate to 8.2 percent. Last month alone, prices of cereal rose 1 percent, rent 0.8 percent, and car insurance 1.6 percent. Gasoline decreased by 4.9 percent, but prices are already on the rise again in October.

 

Social Security has four types of benefits: retirement, disability, survivors of a person who's passed and Supplemental Security Income. 

Some higher earners' taxes will increase.

Currently, Social Security taxes — 7.65 percent for employees, 15.3 percent on the self-employed — are only paid on income up to $147,000. With the changes announced Thursday, the cap rises to $160,200. 

That means those who make more than $147,000 will pay more in Social Security taxes.

For instance, if someone makes $148,000, they’d pay an extra $76.50 in Social Security ($1,000 times 7.65 percent). If they make $160,200, it’d be an additional $1,010.

Michigan does not tax Social Security benefits. 

Monthly benefits will rise:

  • Retired workers: $1,827, up from $1,681
  • Retired couples: $2,972, up from $2,734
  • Widowed mothers with two children:  $3,520, up from $3,238
  • Disabled workers, their partners and one or more children will receive $2,616, up from $2,407
  • All disabled workers will get $1,483, up from $1,364

Business Watch

Covering the intersection of business and policy, and informing Michigan employers and workers on the long road back from coronavirus.

Thanks to Business Watch sponsors:

Support Bridge's nonprofit civic journalism. Donate today.

We're not just a news organization, we're also your neighbors

We’ve been there for you with daily Michigan COVID-19 news; reporting on the emergence of the virus, daily numbers with our tracker and dashboard, exploding unemployment, and we finally were able to report on mass vaccine distribution. We report because the news impacts all of us. Will you please support our nonprofit newsroom?

Pay with VISA Pay with MasterCard Pay with American Express Pay with PayPal Donate Now