Five changes to Social Security are set to take effect next week; are you prepared?
Major Changes Coming to Social Security
Numerous changes are in store for Social Security users in 2022, which is only one week away.
Seventy million Americans are reliant on government assistance and are influenced by these changes.
One significant change is a rise in the COLA, but there will be others as well.
The first and most well-known change is an increase in COLA or cost of living adjustments. This occurs annually to assist persons on a fixed income in keeping up with inflation. COLA increased by 5.9 percent this year. Inflation increased by more than 6% in 2021, according to data. This increase will result in a 5.9 percent rise in recipients’ checks. Couples would receive an additional $154 per month, while individuals would receive an additional $92 per month.
Additionally, those receiving SSDI, or disability insurance, will enjoy a 5.9 percent raise. These will provide beneficiaries with an additional $76 each month. SSDI recipients have infirmities that prevent them from working or require them to work less, the objective is to compensate for the income that has been lost. To view the full extent of the medical conditions that qualify a person for Social Security Disability Benefits, visit here.
In 2022, the wages ceiling will be increased. Anyone earning more beyond a certain amount often sees their benefits diminish, and the threshold will increase next year. In 2021, the Social Security Administration will withhold $1 for every $2 earned beyond $18,960. In 2022, the Social Security Administration will not begin withholding until you earn more than $19,560. These are the salaries available to persons who retire before reaching full retirement age.
Earnings will not be withheld from those reaching full retirement age in 2022 until they hit $51,960. Credit-earning threshold will increase to $1,510 in 2022, up from $1,470 in 2021. To retire, you must earn 40 credits. Finally, another significant change is that workers will be required to pay a higher share of Social Security taxes. In 2021, the tax threshold was $142,800. It will be $147,000 in 2022.
If you’re curious if you or a loved one qualifies for Social Security Disability Benefits, you can take this free evaluation form and get in contact with a disability attorney. As well as learning how to apply for benefits online or going in person to your local Social Security Office.
If you’re located in the Houston, Texas area and are interested in going to your local Social Security office, the following are offices located in Houston, Texas.