Episode Details

SSA Benefits Increasing 2022

65 million Americans receives a monthly payout

Beneficiaries are getting their biggest "raise" in nearly four decades

• COLA for 2022 came in at 5.9% the biggest increase since 1983 - 7.4%
• For context, last year it increased by 1.3%
• ***designed to keep beneficiaries on par with inflation and not help them "get ahead."
• Seniorsleague.org did a study in 2019 and determined that the purchasing power of Social Security benefits have lost 33% since the year 2000

FRA or Full Retirement Age is increasing 2 months from 66 years and 10 months for persons born in 1959 to 67 years for anyone born in 1960 or later.

• Prior to FRA permanent reduction to your monthly payout.
• Wait after FRA, can receive more than 100%
• If you wait till past age 70 you can receive 132%
• https://www.ssa.gov/benefits/retirement/planner/1943-delay.html

High earners will pay more in taxes

• Last year, the Social Security program collected just shy of $1.12 trillion in income. Approximately $1 trillion was the result of the 12.4% payroll tax on earned income (wages and salary, but not investment income).
• This year the payroll tax was up to $142,800
• 2022 rising by $4,200 to $147,000 which affects about 6% of Americans - extra $520.80

Maximum monthly payouts are increasing

• This year maximum monthly benefits at full retirement age were capped at $3,148.
• 2022, the maximum monthly payout is increasing by $197 a month to $3,345.
• How to receive max payout
• Wait until FRA
• Work at least 35 years
• Perfectly hit or surpass the maximum taxable earnings cap for the 35 years the SSA uses to calculate their monthly payout.

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