MANY changes will come to Social Security benefits in 2022.
Claimants can expect an increase in, among other changes, their monthly allowance.
Social Security benefit about 70 million Americans.
Below, we highlight five of the changes claimants can expect as of January 1, 2022.
Cost-of-living adjustments to offset inflationary.
As we have seen in the 12-month period ending in September, the data shows that the price has increased by 5.4%.
The resulting increase in COLA means Social Security claimants can expect a 5.9% increase in monthly payments.
That means, on average, a 2022 retired worker’s check will grow by $92 – from $1,565 to $1,657 a month.
For a couple, the benefit increases by $154 – from $2,599 to $2,753 per month.
Increase payments to Americans with disabilities
Those who claim compensation Social Security Disability Insurance (SSDI) will also benefit from a 5.9% increase in COLA.
In this case, the average monthly benefit for disabled workers would increase by $76 – from $1,282 to $1,358 a month.
SSDI provides relief to people with disabilities who are no longer able to work or who work at reduced capacity.
This benefit is intended to partially replace a qualified worker’s salary.
Income limit to increase
People Working while receiving Social Security benefits may receive less benefit, depending on the amount earned.
If your income is more than $18,960 in 2021, the SSA will withhold $1 for every $2 you earn over the limit if you’re under full retirement age.
But in 2022, this threshold will increase to $19,560.
If you reach retirement age in 2022, you’ll be able to earn $51,960 next year – up $1,440 from the 2021 annual limit of $50,520.
In that case, $1 is withheld for every $3 earned above that threshold.
If you were born in 1960 or later, your full retirement age is 67. For everyone else, it’s 66 and a specific number of months.
Increase credit income threshold
People born in 1929 or later must earn at least 40 credits during their working life to be eligible for Social Security benefits.
Credits are set to a maximum of four per year.
Each year, the amount required to earn a credit increases slightly.
In 2022, it will increase from $1,470 to $1,510 in 2022.
Meanwhile, the number of credits required for a disability depends on your age when you became disabled.
Workers pay more taxes
Along with the COLA increase, the Social Security Administration also confirmed that the maximum earnings amount is subject to Social Security Tax will increase in January.
After the average salary increase, taxes will increase from $142,800 to $147,000.
High-wage workers will have to pay taxes on a larger percentage of their income.
We explain why an increase in COLA is bad news for retirees and future claimants.
We also explain three factors that can affect your monthly Social Security payment.
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https://www.the-sun.com/money/4336762/cola-social-security-changes-january/ Five Social Security changes from NEXT WEEK that you need to know