The Social Security Administration has announced that its annual cost-of-living adjustment (COLA) for 2022 is 5.9%. That is, for individuals receiving Social Security Disability or Retirement benefits, and also individuals receiving Supplemental Security Income (SSI) benefits, the monthly benefit amount will increase by 5.9% for 2022. The COLA adjustment affects the benefits of approximately 70 million people.
Nationwide, approximately 8 million people receive SSI payments. The increased SSI benefit amount begins on December 30, 2021. About 64 million people receive Social Security benefits through various programs. The 5.9 percent COLA increased payment amount will begin with benefits payable in January 2022. Some people receive both Social Security and SSI benefits.
For individuals who are continuing to work, there are some annual adjustments based on the increased cost of living that may have a financial impact.
The maximum amount of earnings subject to Social Security taxes increases from $142,800 to $147,000.
The maximum Social Security benefit for a Worker retiring at Full Retirement Age increases from $3,148 per month to $3,345 per month.
The amount of earnings required to earn a quarter of coverage increases from $1,470 per month to $1,510 per month.
The COLA adjustment also affects individuals who are disabled. The SSI federal benefit amount increases from $794 to $841 for individuals. For couples, the SSI federal benefit amount increases from $1,191 per month to $1,261.
The average retired worker now receives approximately $1,565 per month. After the COLA increase, the average monthly payment is estimated to increase to $1,657 per month.
The average Disabled Worker’s benefit amount is expected to increase from the present amount of $1,282 per month to $1,358.