We are privately owned and not affiliated or endorsed by any government agency.

Take the Benefits Quiz

Social Security To Increase Benefits by 5.9% in 2022, Largest Increase in 40 Years

Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 5.9% in 2022.

Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 5.9 percent in 2022, the Social Security Administration announced today.

This is the biggest increase in Social Security benefits in over 40 years.

The 5.9% cost-of-living adjustment (COLA) will begin with benefits payable to more than 64 million Social Security beneficiaries in January 2022. Increased payments to approximately 8 million SSI beneficiaries will begin on December 30, 2021. (Note: some people receive both Social Security and SSI benefits).

The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.

Some other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $147,000 from $142,800.

Social Security and SSI beneficiaries are normally notified by mail starting in early December about their new benefit amount. Most people who receive Social Security payments will be able to view their COLA notice online through their personal my Social Security account. People may create or access their my Social Security account online at https://www.ssa.gov/myaccount/.

2022 Social Security Changes

Cost-of-Living Adjustment (COLA):

Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2020 through the third quarter of 2021, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 5.9 percent COLA for 2022. Other important 2022 Social Security information is as follows:

Tax Rate 2021 2022
Employee 7.65% 7.65%
Self-Employed 15.30% 15.30%

NOTE: The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings. Also, as of January 2013, individuals with earned income of more than

$200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes. The tax rates shown above do not include the 0.9 percent.

2021 2022
Maximum Taxable Earnings
Social Security (OASDI only) $142,800 $147,000
Medicare (HI only) No Limit
Quarter of Coverage
$1,470 $1,510
Retirement Earnings Test Exempt Amounts
Under full retirement age $18,960/yr.($1,580/mo.) $19,560/yr.($1,630/mo.)
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.
The year an individual reaches full retirement age $50,520/yr.($4,210/mo.) $51,960/yr.($4,330/mo.)
NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit.
Beginning the month an individual attains full retirement age None

2021 2022
Social Security Disability Thresholds
Substantial Gainful Activity (SGA)
Non-Blind $1,310/mo. $1,350/mo.
Blind $2,190/mo. $2,260/mo.
Trial Work Period (TWP) $ 940/mo. $ 970/mo.
Maximum Social Security Benefit: Worker Retiring at Full Retirement Age
$3,148/mo. $3,345/mo.
SSI Federal Payment Standard
Individual $ 794/mo. $ 841/mo.
Couple $1,191/mo. $1,261/mo.
SSI Resource Limits
Individual $2,000 $2,000
Couple $3,000 $3,000
SSI Student Exclusion
Monthly limit $1,930 $2,040
Annual limit $7,770 $8,230
Estimated Average Monthly Social Security Benefits Payable in January 2022
Before 5.9% COLA After 5.9% COLA
All Retired Workers $1,565 $1,657
Aged Couple, Both Receiving Benefits $2,599 $2,753
Widowed Mother and Two Children $3,009 $3,187
Aged Widow(er) Alone $1,467 $1,553
Disabled Worker, Spouse and One or More Children $2,250 $2,383
All Disabled Workers $1,282 $1,358

Benefits.com Advisors

With expertise spanning local, state, and federal benefit programs, our team is dedicated to guiding individuals towards the perfect program tailored to their unique circumstances.

Rise to the top with Peak Benefits!

Join our Peak Benefits Newsletter for the latest news, resources, and offers on all things government benefits.

Related Articles