So far, recipients of Social Security and SSI (Supplemental Security Income) are enjoying a prosperous year in 2022.
The Social Security Administration (SSA) announced that benefits for Social Security and Supplemental Security Income (SSI) will increase in January 2022 for about 70 million Americans. At the moment, Social Security benefits are one of the three most important sources of retirement income for most Americans.
For those of you who receive Social Security payments and are curious about how much extra you’ll receive in January 2022, we have the information you’re looking for.
What amount of money will you receive as a result of the Social Security Administration’s wage rise in January?
Americans who are retired or disabled are the ones who rely on Social Security benefits the most. According to the Social Security Administration, approximately half of the U.S. population aged 65 and over “receives at least 50 percent of their family income” from Social Security benefits.
In the United States, it is estimated that approximately 25 percent of elderly households are extremely reliant on Social Security benefits, which account for at least 90 percent of their family wages. The Consumer Price Index (CPI) is expected to rise by 5.9 percent in 2022, resulting in a 5.9 percent increase in Social Security benefits (CPI-W).
This increase prompted the Social Security Administration to revise the COLA (Cost-of-Living Adjustment) for 2022 as a result of it. Beneficiaries received a 1.3 percent cost-of-living increase in January 2021, although that amount has dramatically increased in 2022.
Given the increase in the cost of living, the Social Security Administration (SSA) projects that 68 million Social Security beneficiaries will enjoy an increase in their monthly benefits starting in January 2022.
For your convenience, we’ve included a table summarizing the expected average monthly Social Security payments that will be payable in January 2022 to give you an idea of how much more you could be receiving in benefits.
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The figures are taken straight from the Social Security Administration.
People who receive Social Security benefits may want to keep an eye out for their monthly checks or direct deposits in January to ensure that it reflects the 5.9 percent increase.
What additional adjustments is the Social Security Administration (SSA) implementing in addition to the Social Security COLA for 2022?
In addition to increasing Social Security benefits by 5.9 percent, the Social Security Administration (SSA) announced that the maximum amount of earnings due to the Social Security levy will increase to $147,000 from $142,800.
It is also increasing the wage limit for people who have not reached full retirement age yet, which will now be $19,560 instead of $18,960. According to the Social Security Administration, for every $2 earned in excess of the limit, $1 will be deducted from payments.
People who will reach their full retirement age in 2022 will notice that their earnings ceiling has been raised from $50,520 to $51,960, an increase of $1,500. Once again, the Social Security Administration will remove $1 from payments for every $3 earned in excess of the statutory maximum.
The deduction will continue until the individual achieves the age of full retirement, which will be the month after that.