COST OF LIVING ADJUSTMENT
Social Security Announces 5.9 % Benefit Increase for 2022
Social Security and Supplemental Security Income ( SSI ) benefits for approximately 70 million Americans will increase 5.9 percent in 2022 .
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 eight million SSI beneficiaries will begin on December 30 , 2021 . ( Note : some people receive both Social Security and SSI benefits ). The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor ’ s Bureau of Labor Statistics .
Some other adjustments that take effect in January of each year are based on the increase in average wages . Based on that increase , the maximum amount of earnings subject to the Social Security tax ( taxable maximum ) will increase to $ 147,000 from $ 142,800 .
The earnings limit for workers who are younger than “ full ” retirement age in 2022 will increase to $ 19,560 ( Social Security deducts $ 1 from benefits for each $ 2 earned over $ 19,560 ). 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 .
Social Security and SSI beneficiaries are normally notified by mail starting in early December about their new benefit amount . Most people who receive Social Security payments will be able to view their COLA notice online through their personal my Social Security account . People may create or access their my Social Security account online at
www . socialsecurity . gov / myaccount . �
The earnings limit for people reaching their “ full ” retirement age in 2022 will increase to $ 51,960 . ( Social Security deducts $ 1 from benefits for each $ 3 earned over $ 51,600 until the month
THE DOCKET - JANUARY 2022 | 17