Supplemental Security Income, or SSI, is something collected by millions of Americans as a source of income when they’re retired or disabled. Five major changes are coming in 2022.
Statistically speaking, 33% of income for the elderly population is SSI, so these changes will impact millions.
So what are these major changes to social security?
COLA was announced to be 5.9% for 2022
Starting Jan. 1, 2022, retired and disabled Americans who collect on SSI will see a major boost to their monthly checks.
The increase is the largest in recent history, and the average dollar amount people can expect is around $92 more dollars. Couples that collect will see an increase of around $154.
Expect a notification in the mail from social security about your specific situation sometime in December.
Disabled Americans are seeing the same increase in monthly SSI
That 5.9% applies to social security disability insurance as well.
The average increase beneficiaries can expect will be around $76.
This income works to offset permanently disabled Americans who can no longer work the way they once could.
How much you earn while you collect SSI will have the limit increased
Many people work while collecting SSI.
If a person collects over $18,960 in 2021, SSA takes and holds $1 for every $2 earned over that limit.
Beginning in 2022 the limit will be $19,560.
Credit earning amount will increase
For anyone born after 1929, they need to earn 40 credits over their entire working life in order to qualify for benefits.
The maximum is 4 per year, and a single credit this year is worth $1,470. Come 2022 that necessary amount increases to $1,510.
For disabled Americans the number of required credits depends on the age when the disability happened.
Anyone who still works will pay higher taxes
The COLA goes up and so does the maximum earnings amount that are subject to social security tax.
The increase will go from $142,800 to $147,000 after an increase in average wages.
The higher a persons salary, a larger proportion of their salary will be taxed.
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