Cost-of-Living Adjustment (COLA) For 2022: 5.9 percent
Number of Workers with Earnings Covered by Social Security: 177 million
Percentage of American Workers Covered by Social Security: 94 percent
Number of People Receiving Social Security:
Total Old Age, Survivors, and Disability Insurance Beneficiaries: 65.2 million
Retirees and their families: 50.1 million
Survivors of deceased workers: 5.8 million
Disabled workers and their families: 9.3 million
Estimated Average Monthly Benefit — 2022
Retired worker: $1,657
Retired couple: $2,753
Disabled worker: $1,358
Disabled worker, Spouse and One or More Children: $2,383
Aged widow or widower: $1,553
Widow mother with two children: $3,187
Maximum Social Security Benefit: $3,345/a month (Worker Retiring at Full Retirement Age)
Retirement Earnings Test Exempt Amounts:
- Under full retirement age-
- 2021- $18,960/a year — $1,580/a month
- 2022- $19,560/a year — $1,630/a month
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.
- The year an individual reaches full retirement age-
- 2021- $50,520/a year — $4,210/a month
- 2022- $51,960/a year — $4,330/a month
NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit.
- Full retirement age and older, there is no exempt amount as benefits are not subject to deductions based on work activity at full retirement age and beyond
Social Security and Medicare Tax Rate
Tax rate paid by employee: 7.65 percent (6.2 percent – Social Security, 1.45 percent – Hospital Insurance)
Tax rate paid by employer: 7. 65 percent (6.2 percent – Social Security, 1.45 percent – Hospital Insurance)
Total tax rate paid by self-employed:15. 3 percent (12.4 percent – Social Security, 2.9 percent – Hospital Insurance)
NOTE: The 7.65 percent tax rate is the combined rate for Social Security and Medicare. The Social Security portion is 6.2 percent on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (Hospital Insurance) is 1.45 percent on all earnings. The Hospital Insurance tax rate increased 0.9 percent for single filers with wages above $200,000 and joint filers with wages above $250,000 beginning January 2013.
Maximum Taxable Earnings Base
Social Security:
- $142,800 (2021)
- $147,000 (2022)
Hospital Insurance:
- No Limit
Earnings needed to credit a quarter of coverage (QC):
- 2021- $1,470
- 2022- $1,510
Maximum of 4 credited per year
Full Retirement Age Schedule — by Year of Birth:
1938 – 65/2 months 1942 – 65/10 months 1957 – 66/6 months
1939 – 65/4 months 1943-54 – 66 1958 – 66/8 months
1940 – 65/6 months 1955 – 66/2 months 1959 – 66/10 months
1941 – 65/8 months 1956 – 66/4 months 1960+ – 67
Source:
Social Security Fact Sheet: 2022 Social Security Changes
Government Relations and Policy