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SOCIAL SECURITY BENEFITS INCREASE IN 2022

Arnold & Arnold LLC Nov. 9, 2021
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Approximately 70 million Americans will see a 5.9% increase in their Social
Security benefits and Supplemental Security Income (SSI) payments in 2022.

Approximately 70 million Americans will see a 5.9% increase in their Social
Security benefits and Supplemental Security Income (SSI) payments in 2022.
Federal benefit rates increase when the cost-of-living rises, as measured by the
Department of Labor’s Consumer Price Index (CPI-W).

The CPI-W rises when inflation increases, leading to a higher cost-of-living.
This change means prices for goods and services, on average, are a little more
expensive, so the cost-of-living adjustment (COLA) helps to offset these costs.

The SSA will mail COLA notices throughout the month of December to retirement,
survivors, and disability beneficiaries, SSI recipients, and representative
payees. But, if you want to know your new benefit amount sooner, you can
securely obtain your Social Security COLA notice online using the Message Center
in your my Social Security account. You can access this information in early
December prior to the mailed notice.

If you prefer to access your COLA notice online and not receive the mailed
notice, you can log in to your personal my Social Security account to opt out of
a mailed COLA notice and any other notices that are available online by updating
your Preferences in the Message Center. Did you know you can receive a text or
email alert when there is a new message waiting for you? That way, you always
know when we have something important for you – like your COLA notice. If you
don’t have an account yet, you must create one by November 17, 2021, to receive
the 2022 COLA notice online.

January 2022 marks other changes that will happen based on the increase in the
national average wage index. For example, the maximum amount of earnings subject
to Social Security payroll tax in 2022 will be higher. The retirement earnings
test exempt amount will also change in 2022.

You can find more information about the 2022 COLA here.


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