More than 8 million retirees will see a minimum of $1011 in additional benefits next year, according to the Social Security Administration.
Current recipients have been granted a COLA or cost of living adjustment increase. A cost-of-living adjustment (COLA) is an increase made to Social Security and Supplemental Security Income to counteract the effects of inflation.
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Cost-of-living adjustments are typically equal to the percentage increase in the consumer price index for urban wage earners and clerical workers (CPI-W) for a specific period. The COLA for 2022 is 5.9%
This raise is very beneficial since a lot of recipients have been suffering the repercussions of rising inflation.
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Here are more changes social security recipients can expect:
- Earning allowance raised to $19,650 for those under full retirement age
- SSDI benefits increased to more than $2300 monthly for a disabled couple with a child
- Wage limits capped at $51,960 for fully aged retirees starting next year
- Total earnings subject to social security tax capped at $142,800
A new benefits schedule has also been instituted to accommodate the rate increase, which allows increased payments to commence based on the recipient’s date of birth.
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The bonus payments will be staggered as follows:
- Birthdays occurring between the 1st and 10th of the month- money received on 2nd Wednesdays
- Birthdays occurring between the 11th and 20th of the month- money received on 3rd Wednesdays
- Birthdays occurring between the 21st and 30th of the month- money received on 4th Wednesdays
Letters advising current recipients will begin to be sent out as of the last week of 2021.
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The 5.9 percent cost-of-living adjustment (COLA) 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 December 30, 2021.
The earnings limit for people reaching their “full” retirement age in 2022 will increase to $51,960. (We deduct $1 from benefits for each $3 earned over $51,960 until the month the worker turns “full” retirement age.)
There is no limit on earnings for workers who are “full” retirement age or older for the entire year.
For more updates, keep posted here at the East County Gazette.
