Social Security sets new benefit amount

WASHINGTON, D.C. — Social Security and Supplemental Security Income benefits for approximately 70 million Americans will increase 5.9 percent in 2022, the Social Security Administration announced on Wednesday.

The 5.9 percent cost-of-living adjustment will begin with benefits payable to more than 64 million Social Security beneficiaries in January.

Increased payments to approximately 8 million SSI beneficiaries will begin on Dec. 30.

The Social Security Act ties the adjustment to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.

Another adjustment set for January is based on the increase in average wages. The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $147,000 from $142,800.

Social Security will not be able to compute their new benefit amounts for Medicare recipients until after the Medicare premium amounts for 2022 are established later.