Despite Big Social Security Changes in 2022, This Rule Will Stay the Same -- and It Could Cost You
In 2022 Social Security is changing in many important ways. Benefits are increasing by 5.9% thanks to a large Cost of Living Adjustment. The amount of money a worker needs to earn a work credit to become eligible for Social Security is increasing. The maximum income subject to Social Security tax is increasing. And the amount of money seniors can earn by working without affecting Social Security benefits is going up.
All of these changes are occurring because Social Security recognizes that wages and expenses go up over time. In order to ensure retirees retain buying power and that people are contributing an appropriate percentage of their income to Social Security, the SSA adjusts most key formulas to account for inflation and wage growth.
But there's one number that isn't going up. And the fact it doesn't increase each year could end up costing a growing number of retirees an ever-increasing amount of money. Here's what it is.
Source Fool.com
