In 2022, social security beneficiaries will experience the largest increase in 39 years

0

It was 1983: the United States invaded Grenada. A gallon of gasoline costs 96 cents. Premiere of Michael Jackson’s “Thriller” video. That year was also the last time Social Security beneficiaries saw a larger increase in the cost of living than the one just announced for 2022. This year, Social Security benefits will increase by $ 5. 9%, the largest increase since the 7.4% jump in 1983.

The increase in the cost of living is linked to the consumer price index, and the increase in inflation rates and gas prices caused by the ongoing coronavirus pandemic means that social security beneficiaries will experience a large increase in 2022. The 5.9% increase overshadows the 1.3% increase of last year, and over the past decade increases have only averaged 1 , 65%. The average monthly benefit of $ 1,565 in 2021 will increase from $ 92 per month to $ 1,657 per month for an individual beneficiary, or $ 19,884 per year.

Changes in the cost of living also affect the maximum amount of income subject to social security tax, which will drop from $ 142,800 to $ 147,000.

For 2022, the federal standard for monthly Supplemental Security Income (SSI) will be $ 841 for an individual and $ 1,261 for a couple.

Some of the increase, however, will be absorbed by higher premiums from Medicare Part B. The standard monthly premium for Medicare Part B enrollments has yet to be announced, but is expected to increase by $ 10 per month to reach 158. , $ 30.

Most beneficiaries will be able to find out their specific cost of living adjustment online by logging into my Social Security in December 2021. Although you can still receive your notice of increase by mail, you have the option of obtaining the notice online instead.

To learn more about 2022 Social Security benefit levels, click here.

Last modification: 10/14/2021

Learn the secrets of estate planning from an expert

ADVERTISING


Source link

Leave A Reply

Your email address will not be published.