The new year will usher in some big changes to Social Security. According to The Motley Fool, there are few in particular that you need to pay attention to:
- COLA increase — Social Security beneficiaries will receive a 5.9 percent cost of living adjustment (COLA) in 2022. The big increase can be credited to inflation, but, unfortunately, inflation means your buying power will be reduced. Still, nearly six percent COLA will certainly help seniors living on fixed incomes.
- FRA increase — The full retirement age (FRA) is increasing to 67 in 2022. This applies to anyone born in 1960 or later. This is the age at which you can claim full benefits.
- Earnings increase — If you haven’t reached full retirement age and intend to keep working in 2022, you will be able to earn up to $19,560 annually without seeing a reduction in your Social Security benefits. That’s about $50 more per month than 2021. If you will reach FRA during 2022, you can earn up to $51,960 during the portion of the year before you reach FRA (up from $50,520 in 2021) without seeing your Social Security checks docked.
The Seniors Trust is devoted to protecting and expanding Social Security retirement benefits for every American senior. We are working to defend the financial security of America’s senior citizens through passage of the Social Security Expansion Act. When enacted it will increase benefits, create a strong and long-lasting trust fund, and guarantee every retired worker receives adequate Social Security benefits and a fair Cost-of-Living Adjustment (COLA). You can show your support by signing our petition to Congress.