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Social Security Announces 5.9 Percent Benefit Increase for 2022

seniors working artchick

photo by ArtChick

the staff of the Ridgewood blog

Ridgewood NJ, Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 5.9 percent in 2022, the Social Security Administration announced today.

The 5.9 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 64 million Social Security beneficiaries in January 2022. Increased payments to approximately 8 million SSI beneficiaries will begin on December 30, 2021. (Note: 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.

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.

2 thoughts on “Social Security Announces 5.9 Percent Benefit Increase for 2022

  1. They paint it as something good, when what it is, is an indication that things are not going so well.

    The purpose of a COLA is to keep your buying power level. It does not represent an increase in buying power, unless all you buy are items that are not increasing in value in the BLS market basket..

  2. It’s about time they had a raise

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