![]() ![]() Lower earners won't be impacted by this change, but higher earners could lose more of their income to Social Security. Come next year, that wage cap will increase to $147,000. In 2021, earnings of up to $142,800 are subject to Social Security taxes. Each year, there's a wage cap put into place that determines how much income gets taxed. Workers don't pay Social Security taxes on all of their earnings. ![]() A higher wage cap for Social Security tax purposes ► Social Security: Cost-of-living increase will boost benefits 5.9% in 2022 2. The standard monthly Part B premium will cost $29.60 more in 2022 compared to 2021, which will eat up roughly one-third of the typical beneficiary's COLA. That said, the cost of Medicare Part B is also rising a lot, and so seniors on Social Security won't get to enjoy that raise in full. That will take the average monthly benefit of $1,565 up to $1,657. Going into 2022, Social Security recipients can expect to see their benefits rise 5.9%. This year, however, inflation has been rampant, and so benefits are getting a sizable boost in light of that. ![]() That's because they're tied directly to inflation data, and prior to 2021, the rate of inflation held pretty steady. In recent years, Social Security's annual cost-of-living adjustments (COLAs) have been pretty stingy. Here are a few changes that could impact your finances in 2022. Social Security has been around for decades, but the program still undergoes its share of changes from year to year. Watch Video: When to start collecting Social Security checks ![]()
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