Changes are coming to the Social Security and the cost of living adjustment (COLA) in January.
Some of the changes include an adjustment in the COLA by 5.9 percent in the new year which will lead to an increase of $92 in the average 2022 check for a retired worker. For example, a typical couple will see their benefits rise by $154, so they will see a climb from $2,599 to $2,753 per month.
Disabled workers’ average monthly benefit will rise up by $76, according to Marca.
It is also possible to see your Social Security benefits reduce if you are in employment, depending on how much you are bringing in. The SSA withheld $1 for every $2 you earn over $18,960 in 2021 if you are below the full retirement age, but the threshold will rise to $19,560 in 2022.
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If you reach your full retirement age in 2022, you will be able to make $51,960 next year, which is a rise from the 2021 annual limit of $50,520. In this case, $1 is withheld for every $3 earned over $51,960.
The SSA has confirmed that the maximum amount someone can earn subject to Social Security tax will rise in January, going from $142,800 to $147,000. This means the highest earners will pay more tax.