The 2022 COLA adjustments have been applied to January’s new Social Security benefits, and the first checks have already begun to arrive in bank accounts.
This year, benefits will get the biggest COLA in history, a 5.9 percent rise to account for the pandemic’s rampant and abrupt inflation.
While each individual’s Social Security payment is determined by their wages and years worked, a tiny number of people will receive an additional $200 or more every month in their benefit check. In order to get an extra $200 in benefits each month, you would have had to get at least $3,389 in benefits each month in 2021. In 2021, the maximum benefit available to someone retiring at the age of 70 was $3,895.
The Social Security Administration establishes a ceiling on the amount of wages subject to Social Security taxation. This statistic varies year to year to account for inflation and is used by the Social Security Administration to calculate the maximum Social Security income. If you earn more than the maximum in any given year, the SSA will compute your benefits based on the maximum. In 2021, the maximum taxable earnings increased from $142,800 to $147,000.
Max Benefit By Retirement
The maximum benefit is determined by your retirement age. For instance, if you retire in January 2022 at the full retirement age of 67, your maximum payout will be $3,345. However, if you retire at age 62 in 2022, the SSA estimates that your maximum benefit will be $2,364. If you retire in 2022 at the age of 70, the maximum benefit is $4,194.