We will cut right to the chase, on Wednesday the Social Security Administration announced that 2022 will bring a 5.9% increase to Social Security payments. That’s the biggest increase in 40 years!
The average benefit will have a cost-of-living increase of $92 per month, while for someone receiving a $2,500 per month benefit they will see an increase of almost $150 per month. For those still working, Social Security also announced that the maximum amount of a worker’s earnings subject to Social Security tax will increase from $142,800 to $147,000.
Many folks on Medicare have been concerned about a rise in the cost of their “Part B” insurance. With a $10 increase in Part B premium announced for 2022, the Social Security cost of living increase will not only offset the increase in Part B coverage, but also have a positive financial impact for many retirees.
As always, please don’t hesitate to reach out should you have any questions.
