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