This year will see the highest ever COLA applied to benefits, rising 5.9% to account for rampant and sudden inflation during the pandemic.
While each person’s Social Security benefit will depend on their earnings and the number of years worked, there is a small group who will receive an additional $200 or more per month in their benefit check. For a 5.9% increase to result in an additional $200 per month in benefits, you would need to have received at least $3,389 per month by 2021. The maximum benefit for someone who retired at age 70 in 2021 was $3,895.
The Social Security Administration sets a maximum amount to be taxed by Social Security. This figure changes from year to year to adjust for inflation and is the amount at which the SSA calculates the maximum Social Security benefit. If you earn above the maximum in a year, the SSA will only use the maximum to calculate your benefit. The maximum taxable profit increased from $142,800 in 2021 to $147,000 in 2022.
The maximum benefit depends on the age at which you retire. For example, if you retire at age 67, which is full retirement age, in January 2022, your maximum benefit would be $3,345. However, if you retire at age 62 in 2022, your maximum benefit would be $2,364 according to the SSA. If you retire at age 70 in 2022, your maximum benefit will be $4,194.
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This article originally appeared on GOBankingRates.com: Which Social Security recipients will get an extra $200 in January?