Are you noticing that your dollar is not buying as much as it used to and it’s just getting more difficult to make ends meet? You’d be pleased to know that the Social Security Administration (SSA) considers the cost of living and adjusts your social security payments each year. In 2022, all Social Security beneficiaries will receive a 5.9% increase in benefit
payments. This is the biggest increase since 1982. See what this means to your Social Security benefits and how you can access your financial entitlements.
In October 2021, the SSA announced that the cost-of-living adjustment (COLA) will rise by 5.9% in January 2022. This means an average increase of $92 to the payment of a retired worker which equates to approximately $1,657 per month. On average, a couple will receive an increase of $154, so they will see a rise from $2,599 to $2,753 per month. The COLA increase is also applicable for Social Security Disability Insurance (SSDI), with the average monthly benefit for disabled workers going up by $76, from $1282 to a month.
What is the increase in Income Threshold?
If you are currently employed and below the full retirement age (if born in 1960 or later, full retirement benefits are payable at age 67) and collect Social Security benefits, you may see your benefits reduced depending on how much you are bringing in. Prior to 2022, the SSA withheld $1 for every $2 you earn over $18,960 for those below full retirement age, but the threshold will rise this year to $19,560. If you have reached full retirement age in 2022, you will be able to make $51,960 per 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.
What is the Credit-earning Threshold increase?
If you were born in 1929 or later, you must earn at least 40 credits over the course of your working life to qualify for Social Security retirement benefits, with a maximum of four credits per year. The amount required to earn a single credit increases slightly each year, with 2022 seeing a jump of $40 as it goes from $1,470 in 2021 to $1,510 in January.
What amount earned is subject to Social Security tax?
The maximum amount you can earn that is subject to Social Security tax will rise in January, from $142,800 to $147,000. This means the higher earners will pay more tax.
What are the different types of Social Security benefits?
The SSA provides payment benefits including for Social Security Income (for low-income earners); Social Security Disability Insurance (Mental & Physical Disability benefits); Retirement, Child, Spousal (spouses and ex-spouses), and Survivor benefits (widows and dependent children); as well as Cash Assistance Program for Immigrants (CAPI).
How do I apply for my Social Security entitlements?
There are many personal scenarios to consider when applying for social security benefits, determining the best time to claim, as well as other obstacles, which can make the process seem time-consuming and overwhelming. Fortunately, Help Me Help You Benefits Access Support advocates are ready to do all the work for you and maintain an 80% success rate of all claims submitted versus less than 40% of those that apply independently. To check your eligibility for social security benefits or appeals, start your case review at: www.helpmehelpu.org/bas, and one of our Benefits Access Support advocates will contact you within 24 hours.
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