Social Security benefits to increase 5.9% in 2022

Accounting

The Social Security Administration said Wednesday that Social Security and Supplemental Security Income benefits will go up 5.9% next year, affecting approximately 70 million Americans.

The 5.9% cost-of-living adjustment, or COLA, will start with benefits payable to more than 64 million Social Security beneficiaries in January. Later in the year, increased payments to approximately 8 million SSI beneficiaries will start on Dec. 30, 2021. (Some people receive both Social Security and SSI benefits.)

Based on the increase in average wages as determined by the U.S. Bureau of Labor Statistics, the maximum amount of earnings that will be subject to the Social Security tax will increase to $147,000 from $142,800.

The COLA increases reflect the inflation pressure in the U.S. economy, which has driven up the prices of many goods and supplies that have been hit by shortages, as well as wage increases for workers who have been in heavy demand by businesses this year.

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

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