![]() 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 big Social Security news this year has been the massive 8.7 cost-of-living adjustment (COLA) that boosted the average monthly benefit by 147. 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.Social Security tax rates remain the same for 2022: 6.2% on employees and 12.4% on the self-employed. The average retired worker is collecting 1,554 per month in 2021, according to Social Securitys statistical snapshot in May, and that means a 4.4 increase will translate into only about 17 per.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. Biden is requesting a 10 boost a 1.4 billion increase to the Social Security Administrations operating budget over the amount enacted in 2023.
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