Many people are wondering what their Social Security benefits will look like after they’re recalculated, but how does that work?
Every year the Social Security Administration gets your income information from tax documents.
That information is then used to change your benefits each year.
The information is kept track of, and at the end of your working years, the highest earning 35 years are averaged out.
This information is also indexed as a way to keep track of trends historically, the way it is with inflation.
The more your earnings are each year, the the more your benefits will be.
If you need help figuring this information out, you can reach out to the Social Security Administration.
Social Security in 2022
The COLA rise for 2022 was announced in Oct. 2021.
It was 5.9%, one of the highest increases in recent history.
Most boosts were around $92 per month.
Unfortunately, with that came higher rates of inflation and Medicare cost increases.
What’s good about recalculation is that with inflation, many retired workers will see their monthly payments grow each year.