Three big social security changes coming in 2022

If you are a young retiree, with desire to work and stay engaged, there is good news as you will be able to work – and earn more – without affecting your benefits.

That is just one of three big Social Security changes coming in 2022.

According to a report on the website TheMotleyFool, retirees under the Full-Retirement-Age (FRA) could earn up to $18,960 before forfeiting $1 for every $2 in excess earnings.

For 2022, that amount rises by 3 percent to $19,560.

And for those who have hit their FRA, the earnings limit will go from $50,520 to $51,960 in 2022.

The other 2 changes, according to the report:

Seniors will get larger checks.

In 2022, retirees will get the largest COLA in 40 years, increasing by 5.9 percent.

The average Social Security benefit will go from $1,565 in 2021 to $1,657 in 2022.

However, the reason the increase is so large as a direct result of high inflation and rising prices for basic necessities, like food and gasoline.

Some will pay more in Social Security taxes

While most workers pay Social Security tax on earnings, some above the "wage base" limit - the maximum income subject to Social Security tax each year - either do not pay tax for earnings above the wage base limit or those monies are not counted when retirement benefits are calculated.

In 2022, the wage base is going up from $142,800 to $147,000 in 2022.

With the social security tax at 7.65 percent, you could pay as much as $321.30 in extra taxes, more for the self-employed.

For more, click here.

0
0
0
0
0

Recommended for you