Social Security Payment to Increase in 2022; Check If You Are Eligible

(Photo by Mike Jones from Pexels)

The Social Security Administration (SSA) released its annual adjustments to the Social Security program for 2022 on October 13, 2021. Around 70 million Americans’ Social Security and Supplemental Security Income (SSI) benefits will increase by 5.9% in 2022.

Requirements to Meet 

According to the SSA website, members must earn at least 40 Social Security credits to be eligible for Social Security payments. When they work and pay Social Security taxes, they get recognition. The number of benefits received by members is unaffected by the number of credits earned. The Social Security Administration uses the number of credits gained to assess eligibility for retirement and disability benefits and family members’ eligibility for survivors benefits when they die.

Your total wages and self-employment income for the year are used to calculate your credits. For example, you may work for a year to earn four credits or work for considerably less time to obtain all four.

Types of Benefits, Eligibility 

At the age of 62, you can begin receiving Social Security retirement payments. However, you are entitled to full benefits when you reach full retirement age. If you wait until you reach full retirement age, 70 years old, your benefit amount will grow. If you begin collecting benefits before reaching full retirement age, your payments will be cut by a tiny percentage each month until you reach full retirement age.

People who are disabled and unable to work are eligible for Social Security Disability Insurance (SSDI) benefits if they have worked for years. The amount of work required varies by age, while the individual’s pre-disability earnings determine the monthly payment. SSDI may be provided for a retiree’s spouse, just like retirement benefits (whether current or former). 

The amount you receive is determined by your age when you were incapacitated and your work history, which includes the average amount of money you’ve earned. Furthermore, the amount of SSDI you receive is determined by the number of credits you’ve accumulated throughout your career. In addition, the great majority of SSDI recipients are paid between $800 and $1,800 per month.

Survivor benefits are usually calculated based on the amount of Social Security benefits the deceased was receiving at the time of death. Widows and widowers account for almost two-thirds of the recipients. They can start receiving survivor benefits at the age of 60 (50 if disabled), with rates ranging from 71.5 percent to 100% of the late spouse’s Social Security income, depending on the survivor’s age. For example, suppose you are caring for a deceased kid under the age of 16 or who is incapacitated. In that case, there is no minimum age requirement, and the survivor benefit is equal to 75% of the deceased’s Social Security payout, the AARP posted. 

You do not have to file for survivor benefits as soon as your spouse passes away or when you reach the age of eligibility. There is no deadline for filing, and if you wait until you reach full retirement age, your benefits will increase. However, depending on your financial condition, filing as soon as possible after the death is reported to Social Security may be the best option. Survivor benefits are prorated from the date of application, not from the date of death.

When a person dies, families should notify us as soon as possible. However, they cannot register a death or apply for survivors benefits via the internet.

 Read More About:

Facts on the Fiscal Stimulus for 2021; Financial Assistance in the Event of a Pandemic

IRS Understaffed, Expect Complicated Tax Returns