Five important changes retirees will face in 2022

Pensioners numerous changes are expected in 2022. They will affect 70 million Americans receiving retirement benefits. Edition Finger Lakes1 has compiled a list of 5 major innovations that will most affect the lives of retirees.

GLUE

The first and most famous change is the increase in COLA (cost of living adjustment). This adjustment to pensions and social benefits is done every year. Thus, the government adapts social benefits to inflation.

This year, COLA has grown by 5,9%, that is, payments to pensioners will increase by the same share. Pairs will receive about $ 154 more per month, and individual recipients $ 92 more.

SSDI (Disability Benefits)

Another change in the social security system is that those who receive disability insurance will also see a 5,9% increase in benefits. This will give recipients about $ 76 extra per month.

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Change of pension limits

Anyone whose income exceeds a certain threshold, as a rule, the amount of the benefit is reduced. Next year, the threshold beyond which these decreases begin will be raised.

In 2021, the Social Security Service (SSA) withheld $ 1 in benefits for every $ 2 earned in excess of $ 18. There will be no deductions in 960 until the $ 2022 threshold is reached. These indicators relate to those who receive benefits but have not yet reached full retirement age (currently 19 years and two months).

For those reaching full retirement age in 2022, SSA will not withhold anything until the $ 51 income limit is reached.

Loans have risen in price

The cost of one retirement loan will rise from $ 1470 in 2021 to $ 1510 in 2022. 40 credits are required for retirement.

More taxes

Finally, another major change is that people will have to pay more social security taxes.

In 2021, the threshold for paying taxes was $ 142. In 800, it will amount to 2022 thousand dollars.