Social Security Announces 2022 COLA

The Social Security Administration (SSA) announced that monthly Social Security benefits will increase by 5.9% beginning January 2022. The average benefit will increase $92 to $1,657 per month. This is Social Security’s highest Cost of Living Adjustment (COLA) in 39 years.

The SSA also announced changes to other limits.

• The maximum amount of earnings subject to the Social Security tax for all workers will increase from $142,800 to $147,000. (There is no earnings limit on the Medicare tax.)
• The earnings limit for workers who are younger than full retirement age increases from $18,960 to $19,560.  SSA deducts $1 from the benefit for each $2 earned over $19,560.
• The earnings limit for those reaching full retirement age in 2022 increases from $50,520 to $51,960. SSA deducts $1 from benefits for each $3 earned over $51,960 until the month a worker reaches full retirement age. After you reach full retirement age, there is no earnings limit.

The COLA is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of 2020 compared to the third quarter of 2021.

For more information, please review the SSA Fact Sheet on 2022 Social Security Changes. If you have any questions, please contact the JRB at 888-JRB-FREE (572-3733) or staff@jrbcj.org.

October 2021