Social Security beneficiaries are welcoming 2022 with a huge increase in monetary benefits.
Beneficiaries will be able to receive a 5.9% increase as a cost-of-living adjustment (COLA) is applied to their benefits.
Social Security Benefits
Starting this month, Social Security beneficiaries will receive a larger amount on their benefits since the 1980s.
With the new cost of living adjustment taken into consideration, the payments increased by 5.9% which equates to $93 more per month or $1,116 more annually.
Today, the 5.9% Cost of Living (#COLA) increase goes into effect for Social Security beneficiaries and Supplemental Security Income (#SSI) recipients. Learn more here: https://t.co/s0bStYzCs1
— Social Security (@SocialSecurity) January 1, 2022
As reported in CNET, according to the Consumer Price Index of the US Bureau of Labor Statistics, the increase, which is estimated to be experienced by nearly 70 million Americans, is due to the impact of rising inflation on the cost of consumer goods, which has increased by 5.4% since September.
On the other hand, if Social Security Benefits increased in 2021, Social Security checks' increased was only valued at $1,658 up from $1,565.
Social Security Beneficiaries
Benefits are calculated depending on the number of years a person has worked and their annual pay during that time.
In an instance that the employee wants to retire, the Social Security Administration will calculate a person's benefit amount based on the number of years they worked and when they chose to retire.
AS stated that a monthly fee of 7.5% will be withdrawn from the wages of workers who have an official contract that requires them to pay taxes to the Social Security Administration.
For the employer, a further 7.5% must be paid on the employees' behalf.
To be eligible for benefits, beneficiaries must obtain at least forty credits.
Workers will receive one credit for every $1,510 earned in salary in 2022.
A person can claim four credits each year, which equates to $6,040 in salary in 2022.
How to Know Social Security Benefits?
The 5.9% increase in Social Security has made numerous beneficiaries guess how much they think they would receive and the maximum benefit possible throughout the whole year of 2022.
As reported in CNBC, the public does not need to delay their January Social Security check to know how much they will receive monthly for this year.
Beneficiaries can also figure out their monthly benefit amount for 2022 on their own.
To figure out how much increase users will receive, multiply their monthly benefit by 1.059 for the current year. Subtract their expected Medicare Part B premium from the total.
The amount of Medicare Part B premiums beneficiaries will pay is determined by their income tier, which is calculated using their modified adjusted gross income from two years ago.
Furthermore, beneficiaries can find out through a Social Security login. They can go directly to their My Social Security account, the majority of recipients can access this information online.
In addition, the Social Security Administration usually distributes alerts through the mail.
In 2022, the regular Part B premium will have a 14.5% increase which equates to $170.10, compared to last year's $148.50.
A limited number of beneficiaries will get the maximum monthly social security payment of $4,124, or $49,497 for the entire year.
On the other hand, people who earn more than a specific amount are required to pay an additional sum known as the Income Related Monthly Adjustment Amount. Payments for monthly premiums are frequently withdrawn directly from Social Security benefits.
