The Social Security Administration (SSA) announced on October 13, 2021, that it will be increasing Social Security (SS) and Supplemental Security Income (SSI) benefits by 5.9 percent in 2022. This cost-of-living adjustment (COLA) will begin for 64 million SS beneficiaries in January 2022 and for approximately 8 million SSI beneficiaries, on December 30, 2021. Some people receive both Social Security and SSI benefits.
According to the release: “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.
Notification: Beneficiaries can expect to be notified by mail starting in early December about their new benefit amount. Most SS beneficiaries 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.
Medicare changes for 2022: The release goes on to say that Medicare changes, when announced will be available at www.medicare.gov. “For Social Security beneficiaries receiving Medicare, Social Security will not be able to compute their new benefit amount until after the Medicare premium amounts for 2022 are announced. Final 2022 benefit amounts will be communicated to beneficiaries in December through the mailed COLA notice and my Social Security's Message Center.”
The Social Security Act provides for how the COLA is calculated. To read more, please visit www.socialsecurity.gov/cola.
Contact your Baron Team to learn how the Social Security increases can affect Your Personal Economy SM.
This post is a general communication being provided for informational purposes only. It is educational in nature and not designed to be as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction.