Saturday, June 25

COLA 2022 Increase: First SS increased checks coming this week

In just three days’ time, on December 30, the cost-of-living adjustment (COLA) payments will start to be sent out to the first group of people who qualify for Social Security and Supplemental Security Income (SSI) benefits.

It is estimated that approximately 72 million Americans will receive payments as part of the COLA, which is increasing by 5.9% in 2022, and eight million SSI recipients will see these increased payments begin to arrive on December 30.

There will also be an increase when it comes to the amount of earnings subject to the Social Security tax, as this rises to $147,000. Meanwhile, the earnings limit for workers younger than the full retirement age will rise to $19,560, and for people reaching their full retirement age in 2022 it will increase to $51,960.

If you are someone who is at the retirement age or older, there is no limit with regard to your earnings being subject to the Social Security tax.

COLA increase

On average, there will be a $92 increase for a retired worker when the 2022 check arrives, as it climbs from $1,565 to $1,657 a month. Then, a typical couple will notice their benefits increase by $154, so they will see a rise from $2,599 to $2,753 per month.

The 5.9% COLA increase is also applied for Social Security Disability Insurance (SSDI), with the typical monthly benefit for disabled workers increasing by $76 – from $1,282 to $1,358 a month.

The 5.9 rise for the COLA is the largest increase in 39 years and it is down to the high rates of inflation in the United States at present, with this accelerated by the COVID-19 pandemic.

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According to various reports, the maximum monthly payment for SSI recipients will be $4,194, while the average benefit that people receive will be less than $1,657.

Source

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