Maximum earnings subject to the Social Security tax also increased—from $142,800 a year to $147,000. Other changes for 2022 include an increase in how much money working Social Security recipients can earn before their benefits are reduced and a slight rise in disability benefits.
If you’re getting Social Security retirement benefits, some members of your family may also be eligible for benefits, including: Spouses age 62 or older. Spouses younger than 62, if they are taking care of a child entitled on your record who is younger than age 16 or disabled.
You can start your Social Security retirement benefits as early as age 62, but the benefit amount you receive will be less than your full retirement benefit amount. The chart below provides examples of the percentage of your full retirement benefit amount you and your spouse would receive from age 62 up to your full retirement age.
For every $3 you earn over the limit, your Social Security benefits will be reduced by $1, but that will only apply to money earned in the months prior to hitting full retirement age. Once you reach full retirement age, no benefits will be withheld if you continue working. 2
Other changes for 2022 include an increase in how much money working Social Security recipients can earn before their benefits are reduced and a slight rise in disability benefits.
Looking Ahead to 2035. According to the most recent Social Security and Medicare Boards of Trustees annual report, both trust funds will be depleted as of 2035. If these predictions hold, beginning in 2035, beneficiaries will receive about three-quarters (75%) of their scheduled benefit until at least 2093.
2. Maximum Taxable Earnings Rose to $142,800. In 2020, employees were required to pay a 6.2% Social Security tax (with their employer matching that payment) on income of up to $137,700. Any earnings above that amount were not subject to the tax. In 2021, the tax rate remains the same at 6.2% (12.4% for the self-employed), ...
As we've seen, 2022's 5.9% bump is much higher than most years; in 2021 the COLA increase was just 1.3%. 1 The average monthly benefit for all retired workers will increase by $92 in 2022, from $1,565 to $1,657. 2
In 2019, the COLA was 2.8%, the largest increase since 2012. 3 For the average Social Security recipient, the 1.3% raise amounts to just $20 per month on an average monthly payout of $1,543 vs. $1,523 in 2020. 4 . 2.
Maximum earnings subject to the Social Security tax also increased—from $137,700 a year to $142,800. Other changes for 2021 included an increase in how much money working Social Security recipients can earn before their benefits are reduced and a slight rise in disability benefits.
In 2021, the maximum benefit increases by $137 per month to $3,148. 4 . Social Security recipients can receive a 32% larger payment each month if they claim benefits at age 70 rather than at their regular full retirement age. 3. Full Retirement Age Continues to Rise.