In just a few days some people will see their first Social Security check with the 5.9% COLA increase.
COLA increases are to help those collecting SSI, SSDI, or any other form of Social Security, keep up with the cost of inflation while on a fixed income.
Those collecting SSI will see a bit less because their benefits are sometimes less, but still see the 5.9% increase.
The amount each person sees depends on their working history as well as what type of Social Security benefit they collect.
On Dec. 30, in just two days, 8 million SSI recipients will see their first check with the COLA increase.
Most others will see their checks on their scheduled payment dates in Jan. 2022.
SSI recipients will see two checks in Dec. instead of one in Jan. because they normally get paid the first of the month. Jan. 1 is a federal holiday.
COLA hasn’t increased this much since 2008, when it was increased by 5.8%.
The increase is expected to impact 1 out of 5 Americans.
Those collecting SSDI will see an average increase of about $76 per month.
Earnings limit changes and payment dates for 2022
Some people choose to work when collecting Social Security, and the limit for what they’re allowed to make will increase in 2022.
For the year 2021, anyone collecting over $18,960 saw $1 held for every $2 made by the Social Security Administration.
This is for people below retirement age.
In 2022 the limit will change to $19,560.
For those that have already reached full retirement age, the limit in 2021 has been $50,520. In 2022 it will be $51,960.
For fully retired individuals past the income threshold, $1 is held for every $3 made.
Those collecting Social Security will see their payments on the second, third, and fourth Wednesday of the month depending on their birth date.