Social Security payments for January have already begun to arrive in bank accounts with the 2022 Cost of Living Adjustment (COLA) increases.
Yahoo reports that this is the first time there will be a 5.9% COLA applied to benefits to account for the sudden and rampant inflation during the pandemic.
There are small fractions of people who will receive an additional $200 or more in their Social Security benefit check regardless of their earnings and work experience.
You would have needed to receive at least $3,389 per month in 2021 in order for a 5.9% increase to result in an extra $200 per month in benefits.
A person who retired at 70 in 2021 would receive a maximum benefit of $3,895.
It has been determined by Social Security how much of a worker’s earnings will be taxed.
Social Security calculates the maximum benefit based on earnings and changes from year to year based on inflation.
If you earn more than the maximum in any one year, your benefits will only be calculated based on the maximum threshold.
Meanwhile, from $142,800 in 2021 to $147,000 in 2022, the maximum taxable earnings increased.
Retirement benefits are based on your age at retirement.
The maximum benefit you would receive if you retire at age 67 in January 2022, which is the full retirement age, is $3345.
The Social Security Administration estimates you would receive $2,364 in retirement benefits if you retire at age 62 in 2022.
But, you would receive $4,194 as your maximum benefit in 2022, if you retire at age 70.
