People eligible for Social Security and Supplemental Security Income (SSI) who are struggling to get through 2021 financially can look forward to the new year.
On Wednesday, the Social Security Administration announced SSI benefits for approximately 70 million Americans will increase 5.9 percent in 2022.
The increase is a cost-of-living adjustment (COLA) that will begin in January 2022. Increased payments to approximately eight million SSI beneficiaries will begin on December 30, 2021, as 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.
Other adjustments 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 will increase to $147,000 from $142,800.
Social Security and SSI beneficiaries are normally notified by mail about their new benefit amount, starting in early December. Most people who receive Social Security payments will be able to view their COLA notice online through their personal my Social Security account, which can be accessed HERE.
Information about Medicare changes for 2022, when announced, will be available HERE. 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, click HERE.
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