Social Security Benefits 2022: Determine if You Will Receive an Additional $200 in January
The 2022 COLA increases have already been applied to January Social Security benefits. Additionally, the first checks have begun to arrive in bank accounts.
This year, benefits will get the largest COLA in history, with a 5.9% increase to account for the pandemic’s high and sudden inflation.
Criteria For Earning An Extra $200 In January
While each person’s Social Security benefit is based on their salary and years of service, a small percentage of people will receive an extra $200 or more per month in their payout check. To obtain an extra $200 per month in benefits, one would have had to have earned at least $3,389 per month in 2021, a 5.9% increase. The maximum benefit for a 70-year-old retiree in 2021 was $3,895.
The maximum wage that is subject to Social Security taxation is set by the Social Security Administration. The Social Security Administration uses this figure to compute the maximum Social Security benefit, which varies from year to year to account for inflation.
If you earn more than the maximum amount in a particular year, the Social Security Administration will only compute your benefits based on the maximum amount. The maximum taxable earnings in 2021 will be $147,000, up from $142,800 in the previous year.
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Your Maximum Benefits Will Be Based on Your Retirement Age
The age at which you retire determines your maximum benefit. If you retire at the full retirement age of 67 in January 2022, your maximum compensation will be $3,345. If you retire at the age of 62 in 2022, the maximum compensation will be $2,364, according to the Social Security Administration. If you retired at the age of 70 in 2022, the maximum benefit would be $4,194.
Get an idea of what your new COLA benefits will be by logging on to the Social Security website and entering your SSN and employment history.