Changes in Social Security Benefits for 2022

Due to inflation and a higher cost of living (as measured by the Consumer Price Index), Approximately 70 million Americans will see a 5.9% increase in their Social Security benefits and Supplemental Security Income (SSI) payments in 2022.
If you are working towrd retirement now, the maximum amount of earnings subject to the Social Security tax will increase to $147,000.00 from $142,800.00 in 20222. If you are considering semi-retirement, remember that continuing to draw income from work might reduce the amount of your Social Security benefit before you reach full retirement age. Full retirement age is when you qualify to collect 100% of your benefit allowed from your earnings history. If you are younger than full retirement age during all of 2022, the SSA will deduct $1 from your benefits for each $2 you earn above $19,560.00. If you reach full retirement age during 2022, $1 will be deducted from your benefits for each $3 you earn above $51.960.00 until the month you reach full retirement age. If you begin receiving benefits at full retirement age, or later, then there is no deduction if you earn while collecting benefits. Yes, it is complicated, and you can get full information about your options on your Social Security account online. Go to ssa.gov and sign into your account or create one.
Social Security will mail notices (“COLA”notices) in December 2021 to retirement survivors, and disability beneficiaries, SSI recipients, and representative payees. Of course, you can get this information on the Social Security website.
There are many changes in 2022 and getting the correct information about your specific Situation is easier than ever, thanks to www.ssa.gov.
For an appointment, please call the McNamara Law Firm at 661-287-3260 or visit www.themcnamaralawfirm.com.