The cost-of-living adjustments (COLAs) for 2022 have been added to new Social Security payments for January, and the first checks have already begun to arrive in bank accounts.
This year, the greatest COLA in the program’s history will be applied to benefits, with a 5.9 percent boost to account for the rampant and rapid inflation that occurred throughout the pandemic period.
While each individual’s Social Security benefit will be determined by their wages and the number of years they have worked, there is a tiny group of people who will get an additional $200 or more per month in their benefit check because of their work history.
If you wanted to get an additional $200 per month in benefits as a consequence of a 5.9 percent rise in 2021, you would have needed to have received at least $3,389 per month during that year. In 2021, the maximum benefit available to someone who retired at the age of 70 would be $3,895.
According to the Social Security Administration, there is a limit to the amount of wages that will be subject to Social Security taxation. This sum increases from year to year in order to account for inflation, and it is the amount on which the Social Security Administration (SSA) bases its calculation of the maximum Social Security payout.
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If you earn more than the maximum amount in any one year, the Social Security Administration will only utilise the maximum amount for calculating your benefits. Increased from $142,800 in 2021 to $147,000 in 2022 is the maximum taxable earnings amount.
The maximum benefit is determined by the age at which you retire. Consider the following example: If you retire at the age of 67, which is the full retirement age, in January 2022, your maximum benefit would be $3,345 per month.
According to the Social Security Administration, if you retire at the age of 62 in 2022, your maximum payout would be $2,364. If you retire at the age of 70 in 2022, the maximum pension you would receive would be $4,194.