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Social Security Cost-of-living Adjustments for 2022

Social Security Cost-of-living Adjustments for 2022

Changes to social security benefits and supplemental security income (SSI) programmes were announced by the Social Security Administration (SSA). The modifications, which are announced every year in October, are based on cost-of-living adjustments (COLA) to guarantee that benefits stay up with inflation.

Beginning in January, recipients of Social Security benefits should have seen these adjustments reflected in their monthly payments (December 30, 2021, for recipients of supplemental security income). Monthly benefit amounts and taxable earning thresholds for social security and Medicare taxes are affected by the modifications proposed. Other parts of the scheme remain unchanged, such as SSI resource restrictions and tax rates.

While this is the largest rise in years, retirees and disability recipients normally receive an automatic annual cost-of-living adjustment (COLA) to maintain their spending power and keep up with growing costs, often known as inflation. Social Security Disability and Supplemental Security Income applicants would be receiving a much-needed increase if you rely on Social Security income. Benefits for Social Security and Supplemental Security Income (SSI) are growing by 5.9%, the most in 40 years.This is good news for Social Security and Supplemental Security Income recipients who have been hit hard by the pandemic and are now dealing with higher costs of everything from petrol to food.

Good news is this is the largest rise in years, retirees and disability recipients normally receive an automatic annual cost-of-living adjustment (COLA) to maintain their spending power and keep up with growing costs, often known as inflation.

Cost-of-living Adjustments for 2022

COLA adjustments were first implemented by the Social Security Administration in 1975. Adjustments are based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) between the third quarter of the previous year and the third quarter of the current year, in this case, between October 2020 and September 2021.

The COLA rise for 2022 is 5.9%, which is more than 4.5 times greater than the 1.3 percent increase for 2021. The Social Security Administration projects that the average benefit paid to all retired beneficiaries in 2022 will be $1,675, or $2,753 for a married couple (where both spouses receive benefits). For disabled workers, the average monthly benefit has increased to $1,358. For disabled workers, the average monthly benefit has increased to $1,358. Again, information on how the adjustments will affect individual payments can be found in your my Social Security account or in the SSA's December COLA announcement.

This year, the maximum wages subject to social security taxes will rise from $142,800 in 2021 to $147,000 in 2022. Employees may pay upto 7.65 percent of their income in social security and Medicare taxes, whereas self-employed people pay 15.3 percent.

COLA increase for Supplemental Security Income (SSI)

SSSI participants' monthly payments will rise to $841 for individuals and $1,261 for married couples in 2021, an increase of $47 and $70, respectively, over 2021 benefit amounts.

COLA increase for Social Security Disability Insurance (SSDI)

The Social Security Administration projects that the average SSDI benefit will be $1,358 in 2022, rising to $2,383 for married disabled employees with at least one child. (More on this in upcoming blogs).

Seek Professional Help

Fortunately, our expert disability attorneys at the Law Office of Irene Ruzin are experts at fighting your case for SSDI, no matter if your disability is listed directly in the Blue Book of SSA or if your symptoms are severe enough to prevent you from performing daily activities normally. If you are unsure on how to process with filing your SSDI application, you can simply seek legal help here.

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Tuesday, 17 May 2022