Social Security benefits going up

Posted

Social Security and Supplemental Security Income benefits for approximately 70 million Americans will increase 5.9% in 2022, the Social Security Administration announced Wednesday.

The 5.9% cost-of-living adjustment will begin with benefits payable to more than 64 million Social Security beneficiaries in January 2022. Increased payments to approximately 8 million SSI beneficiaries will begin on Dec. 30, 2021.

The Social Security Act ties the annual cost-of-living adjustment to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics. The index reflected an increase between the third quarters of 2020 and 2021.

Some other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $147,000 from $142,800.

Social Security and SSI beneficiaries are normally notified by mail starting in early December about their new benefit amount. Most people who receive Social Security payments will be able to view their cost-of-living adjustment notice online through their personal my Social Security account. People may create or access their my Social Security account online at www.socialsecurity.gov/myaccount.

Information about Medicare changes for 2022, when announced, will be available at www.medicare.gov. For Social Security beneficiaries receiving Medicare, Social Security will not be able to compute their new benefit amount until after the Medicare premium amounts for 2022 are announced. Final 2022 benefit amounts will be communicated to beneficiaries in December through the mailed COLA notice and my Social Security’s Message Center.

The Social Security Act provides for how the cost-of-living adjustment is calculated. Visit www.socialsecurity.gov/cola to learn more.

Comments

No comments on this story | Please log in to comment by clicking here
Please log in or register to add your comment