Retired and Disabled Americans Beware! 5 Biggest Changes are Coming for Social Security in January 2022
Five major changes are coming to your Social Security benefits in 2022, which might greatly affect retired Americans as well as persons with disability.
Fingerlakes reports these changes as follows:
COLA was announced to be 5.9% for 2022
The increase in benefits is designed to help beneficiaries keep up with rising prices. Retired workers receive the annual COLA from the Social Security Administration (SSA), as do survivors, those getting Social Security Disability Income (SSDI) and recipients of Supplemental Security Income (SSI) payments.
Retired and disabled Americans who collect on SSI will see a major boost to their monthly checks. The increase is the largest in recent history, and the average dollar amount people can expect is around $92 more dollars. Couples that collect will see an increase of around $154.
Recipients may expect a notification in the mail from social security about your specific situation sometime in December.
Disabled Americans are seeing the same increase in monthly SSI
The Social Security Administration announced that the 5.9% adjustment will be paid to more than 64 million Social Security beneficiaries in January, and increased payments will be made to about 8 million disabled people receiving Supplemental Security Income or SSI on Dec. 30.
Read more: Social Security Benefits Are Set to Cut Early. How Does This Affects You?
People with disabilities receiving Supplemental Security Income and other Social Security benefits are set to see the biggest rise in their monthly payments since 1982. The Social Security Administration said that benefits will grow 5.9% in 2022.
How much you earn while you collect SSI will have the limit increase
If a person collects over $18,960 in 2021, SSA takes and holds $1 for every $2 earned over that limit. In 2022 the limit will be $19,560.
Credit earning amount will increase
For anyone born after 1929, they need to earn 40 credits over their entire working life in order to qualify for benefits.
Read more: Social Security Schedule: When Will You Receive Your First COLA Check in 2022?
The maximum is 4 per year, and a single credit this year is worth $1,470. Come 2022 that necessary amount increases to $1,510. For disabled Americans the number of required credits depends on the age when the disability happened.
Anyone who still works will pay higher taxes
The higher a persons salary, a larger proportion of their salary will be taxed.
Higher income workers will pay more money toward Social Security benefits, too, next year.
Read more: What Causes My Social Security Direct Deposit To Be Late?
The maximum amount of earnings that are subject to the Social Security tax will increase to $147,000 from $142,800.
The increase will go from $142,800 to $147,000 after an increase in average wages.
Supplemental Security Income, or SSI, is something collected by millions of Americans as a source of income when they’re retired or disabled. Statistically speaking, 33% of income for the elderly population is SSI, so these changes will impact millions.
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