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5 Things to Know About Your Social Security COLA for 2022


Senior man listening carefully
Ranta Images / Shutterstock.com

Maybe you’ve heard that Social Security payments are getting their largest cost-of-living adjustment in decades next year.

That certainly sounds like a good thing on paper, but the devil is in the details. After all, you’ve probably also heard there’s monster inflation right now.

How big is this Social Security increase, really, and what will it affect? More importantly, when can you get it?

Keep reading for all those answers and more. Here’s what you need to know about the Social Security cost-of-living adjustment (COLA) for 2022.

1. The amount of your Social Security increase

Happy seniors with money
Syda Productions / Shutterstock.com

In October, the Social Security Administration announced the biggest increase in Social Security benefits since the early 1980s.

The 5.9% increase works out to an estimated $92 per month for retired workers, on average.

After a decade of anemic COLA increases, it’s certainly a welcome change. Unfortunately, it may not be cause for too much celebration.

2. It won’t go that far

Uncle Sam cutting Social Security benefits
Jim Barber / Shutterstock.com

Many Social Security recipients have their Medicare Part B premium withheld from their payments. Part B covers doctor visits and outpatient services.

For all of those folks, any increase in their Medicare Part B premium comes off the top of any increase in Social Security benefits.

We explained the bad news in our recent story “Traditional Medicare Premiums Will Soar in 2022” — the standard premium is increasing to $170.10 per month, up from $148.50 in 2021.

That’s an increase of $21.60 per month. So, if the 5.9% COLA increases your Social Security payment by $92 per month, for example, but your standard Part B premium is withheld from your benefits, your monthly payment actually would increase by only $70.40 — before taxes, that is.

Taxes are another reason that the 2022 COLA isn’t as exciting as it sounds.

We explain the math in “Why the Social Security Bump Will Cost Some Retirees in 2022,” but the gist is this: About half of retirees owe taxes on up to 85% of their Social Security, which effectively means they owe a piece of their COLA to Uncle Sam.

3. Your COLA could increase your tax bill

Senior couple reviewing documents
wavebreakmedia / Shutterstock.com

The COLA will increase retirees’ Social Security income. That extra income could in turn cause some retirees to owe more taxes on their benefits in 2022 than they owed in 2021.

It could also cause some people who aren’t currently taxed on their Social Security income to owe Uncle Sam a portion of their benefits in 2022.

You can mitigate this issue by filing a Form W-4V with the Social Security Administration. This won’t change whether you’re taxed on your benefits; instead, it allows you have taxes withheld from your benefits so you don’t get blindsided later by a big tax bill or a penalty for not making tax payments throughout the year.

4. When you will receive your COLA notice

Senior man working on a laptop
Monkey Business Images / Shutterstock.com

Social Security beneficiaries should expect to receive online notification about their exact new benefit amount in early December, according to the SSA:

“Most people who receive Social Security payments will be able to view their COLA notice online through their personal my Social Security account. People may create or access their my Social Security account online at www.socialsecurity.gov/myaccount.”

5. When you will start receiving your COLA

Senior woman holding money
Rob Bayer / Shutterstock.com

You’ll actually start receiving your new benefit amount in January, according to the Social Security Administration. The exact date depends on your birthday:

  • If your birthday falls on days 1 through 10: You will receive your payments on the second Wednesday of each month, meaning you will receive your first payment with the 2022 COLA on Jan. 12.
  • If your birthday falls on days 11 through 20: You will receive your payments on the third Wednesday, meaning you will receive your first 2022 payment on Jan. 19.
  • If your birthday is on days 21 through 31: You will receive your payments on the fourth Wednesday, meaning you will receive your first 2022 payment on Jan. 26.

However, if you’ve been receiving Social Security benefits since before May 1997, or also get Supplemental Security Income benefits, your payment will arrive on Jan. 3. (SSI benefits are supplemental income for elderly, blind or disabled people who have very little income.)

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.