![]() ![]() If the CPI-W increases more than 0.1% year over year between the third quarter of the previous year and the third quarter of the current year, then Social Security will raise benefits by the same amount. ![]() The adjustment helped benefits keep pace with inflation and is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as calculated by the U.S. The big news for 2022 is that nearly 70 million Social Security recipients will see reflected in their monthly benefits the largest cost-of-living adjustment (COLA) since Ronald Reagan's first term in office in 1982. It now takes $1,510 to earn a single Social Security credit, up just $40 from 2021.However, in 1939, an amendment was made to the act that allowed spouses and/or children to begin receiving social security survivor benefits if a parent or spouse was deceased and qualified for social security income. Social Security tax rates remain the same for 2022: 6.2% on employees and 12.4% on the self-employed. The Social Security Act was initially meant to be a form of basic retirement for working individuals.Other changes for 2022 include an increase in how much money working Social Security recipients can earn before their benefits are reduced and a slight rise in disability benefits.Maximum earnings subject to the Social Security tax also increased-from $142,800 a year to $147,000. ![]() Social Security recipients will get a 5.9% raise for 2022, compared with the 1.3% hike that beneficiaries received in 2021. ![]()
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January 2023
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