Do you know what is happening around you? Do you know what if changes are being made to Social Security? I know of 3 and that is what this article is about. The Old-Age, Survivors, and Disability Insurance (OASDI) program also called social security is run by the Social Security Administration (SSA).
Recipients of social security are in 3 categories. They are the Supplemental Security Income Recipients (SSI), the SSA’s Retirement Benefit Program Recipients, and the Social Security Disability Insurance (SSDI) recipients.
What are the 3 changes to Social Security?
SSA’s Cost-of-Living Adjustment has Increased.
This is the best in 40 years. The COLA increased by 5.9% and you should be aware. Prices of things are going up, the November inflation report showed that prices of things have increased by 6.8%. Money is needed to buy things hence the logical reason for an increase in the COLA.
What are the changes that this increase will bring?
SSA’s Retirement Benefit Program Recipients should expect an increase from $1,565 to $1,657 in 2022. Those who are Supplemental Security Income Recipients (SSI) should expect an increase from $749 to $841 in 2022 for Singles and Couples should expect an increase from $1191 to $1,261 in 2022.
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Finally, for recipients of the Social Security Disability Insurance (SSDI), a non-blind person should expect an increase from $1,310 to $1,340 in 2022. While the blind person will have about 70$ increments giving them a $2,260 payment in 2022.
Social Security Maximum Taxable Earning is on the increase.
Not all your earning can social security taxes be deducted from. There is an amount from your earning that is deductible and once you earn more than that, the extra is yours to keep. the limit is called The Maximum Taxable Earnings. When it’s small, that is fine; means you have more to keep, but when it’s getting higher, it means you have less money to keep.
This Maximum Taxable Earning keeps increasing. 2015($118,500), 2016($118,500), 2017($127,200), 2018($128,400), 2019($132,900), 2020($137,700), 2021($142,800), 2022($147,000). Over the past five years, it has had more than a 15.5% increase.
It’s harder to earn Work credits.
One work credit is worth $1,470 in 2021, but it will be $1,510 in 2022. This increment is making it hard to qualify for Social Security Benefits. To qualify for the social security benefits, you need to earn 40 work credits in a lifetime. There is a need for beneficiaries to monitor these changes especially those working part-time.
