Social Security benefits will rise, but what else will happen in 2022 for high-earners and low-income workers?
Due to a rise in inflation, retirees and disabled people receiving Social Security benefits will see fewer benefits per 5.9% increase.
According to some estimates, the 2022 COLA, or cost-of-living adjustment, will add roughly $92 a month to an average retirement benefit of $1,565.
The Social Security Administration said Wednesday that the 5.9% increase will be paid to more than 64 million Social security beneficiaries in January.
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Also, on Dec. 30, additional payments will be made to about 8 million disabled individuals receiving Supplemental Security Income (SSI). Nexus Inc.
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Workers with higher incomes will pay more money for Social Security benefits next year. The maximum amount of income that is subject to the Social Security tax will rise from $142,800 to $147,000.
Medicare premiums are higher than Medicare contributions.
Many retirees arent going to be able to come up with extra cash here. In November, news of Medicare Part B premium increases is expected to surface.
Retirees ages 65 and older should beware for Medicare Part B premium increases, which are expected to rise in 2022 and may reduce some of the COLA increases in Social Security.
Part B covers outpatient and diagnostic services. The monthly premium, which is deducted from Social Security benefits, changes on a yearly basis.
The Social Security Administration stated, Information about Medicare changes for 2022, when they are announced, will be available at www.medicare.gov. Social Security beneficiaries who receive Medicare will not be able to calculate their new benefit amount until after the Medicare premium amounts for 2022 are announced. In December, beneficiaries will be notified of the final 2022 benefit amounts through the mailed COLA notice and my Social Security Message Center.
AARP notes that Social Security remains the nation's most important source of retirement income and provides 90% or more of the income for one in four seniors.
AARP Chief Executive Officer Jo Ann Jenkins said in a statement that the guaranteed benefits provided by Social Security and the COLA increase are more crucial than ever as millions of Americans face the health and economic consequences of the epidemic.