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How Much Can You Earn in 2022 and Still Draw Social Security Benefits?

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Dec. 16 2021, Published 3:03 p.m. ET

For 2022, Social Security received a revamp. With it came several changes that impact full retirement age, cost of living adjustments, medicare premiums, and income thresholds.

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People who are working in 2022 and who haven't reached the full retirement age or already have, can expect new regulations on how much they can earn and still receive Social Security payments.

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Social Security payments will increase in 2022.

To keep up with inflation, social security payments will increase by 5.9 percent, which is a significant increase from the cost-of-living adjustment of a 1.3 percent increase in 2021. For retired workers, the payment will increase by $92 and reach $1,657 a month to comply with the cost of living adjustment. Married couples where both individuals receive benefits will experience an increase of $154 and reach an average payment of $2,753 a month.

While COLA increases, so will Medicare Part B premiums. They will reach $170.10 and monthly rates can be as high as $578.30 for married couples with higher incomes. The max benefit payment for someone who retires at the full retirement age will be $3,345 in 2022. The income tax bracket for employees paying into Social Security has increased as well from $142,800 to $147,000, but the tax rate will remain at 6.2 percent and at 12.4 percent for those who are self-employed.

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"Social security COLA in 2022"

Disability, full retirement age, and Social Security credits will increase.

Along with tax bracket increases, the full retirement age is increasing as well. In 2022, the age that you can claim full retirement benefits will be 67 and will apply to anyone born in 1960 or later. If a person turns 62 in 2022, their full retirement age will be 67. If a person was born in 1929 or later then they have to earn 40 credits (with a max of four per year) over their working life to qualify for Social Security.

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In 2022, it will take $1,510 in earnings per credit. This increase is up by $40 from 2021, which had credit earnings at $1,470. Those receiving disability aid will see an aid boost in 2022. Married disabled workers who have one or more children will have an increase of $133 a month from $2,250 to $2,383. General disability workers will receive an extra $76 a month, which will increase the aid from $1,282 to $1,358 a month

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How much can you earn and still draw Social Security benefits in 2022?

In 2021, if you worked but still received Social Security benefits, the threshold depended on your age and how much you earned. If you were below the full retirement age for the whole year, $1 was deducted from the benefit payments for every $2 earned above the limit. The limit in 2021 was $18,960.

Also in 2021, for the year you reach your full retirement age, $1 was deducted for every $3 earned above the limit, which was $50,520. According to the Social Security Administration, on full retirement age calculations, “We only count your earnings up to the month before you reach your full retirement age, not your earnings for the entire year.”

By 2022, there will be an increase. In 2022, workers under the full retirement age will see an increase from $18,960 to $19,560. $1 will be deducted for every $2 earned over the $19,560 limit. The earning limits for those reaching full retirement age will increase in 2022 from $50,520 to $51,960. $1 will be deducted for every $3 earned over $51,960. There isn't a limit on earnings for workers who are full retirement age or older for the whole year.

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