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7 Changes to Social Security in 2019 – The Motley Fool

Social Security arguably is the most important social program in this country. Hver og en måned, mere end tre ud…

Social Security arguably is the most important social program in this country. Hver og en måned, mere end tre ud af fem pensionister lean på deres ydelseschecks at give mindst halvdelen af ​​deres månedlige indkomst. In turn, i henhold til Center for Budget og Politiske Prioriteringer, Social Security holder over 15 millioner pensionister (og 22,1 millioner bidragsberettigede, ud over fattigdom).

Store ændringer kommer til socialsikring

dens betydning for vores nations ældre, de handicappede, og de overlevende eller deceerede arbejdere, der er simpelthen ingen tid for året mere vigtigt enn midten af ​​oktober. That’s when the Social Security Administration (SSA) announces changes to America’s most important social program for the upcoming year.

With that being said, let’s take a closer look at the seven biggest changes to Social Security in 201


Image source: Getty Images.

1. Beneficiaries are netting their biggest COLA in seven years

The highlight of the SSA’s mid-October announcement is always the “raise” that existing beneficiaries will receive in the upcoming year. This raise is known as the cost-of-living adjustment, or COLA, and is determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

In 2019, Social Security recipients will be Receiving a 2.8% COLA, which is the biggest increase since 2012. Instrumental to this raise has been the rising price of energy goods, such as gasoline and fuel oil. The increased cost of shelter, which includes the largest weighting of any good or service within the CPI-W, also played a key role in pushing Social Security’s COLA to a seven-year high.

Husk at a 2,8% COLA er ikke akkurat i ferd med å gjøre seniors rike eller nødvendigvis representerer den sanne inflasjon de har møtt over det siste året. An analysis from The Senior Citizens League found that the purchasing power of Social Security dollars has declined by 34% over the past 18 years, mainly because the CPI-W does a poor job of representing the expenses that seniors contend with.

As icing on the cake, lower-income Social Security beneficiaries who are also enrolled in Medicare are still likely to play catch-up with their Medicare Part B premiums. Disse betalingsmottagere havde været beskyttet af den holdskadesfrie forsendelse tidligere i dette årti, men denne bestemmelsen har nu gobbled up mest eller alle deres COLA i de senere år og kunne gøre det samme i 2019.

Image source: Getty Images.

2. The rich will owe more in 2019

According to most informal polls, increasing or removing the maximum taxable income cap associated with Social Security’s 12.4% payroll tax is the favored solution of the American public. Selv om kongressen ikke har kunnet aftale om en langsiktig løsning på Social Securitys anslåede $ 13,2 trillion kontantunderskud mellem 2034 og 2092, vil offentligheden være glad for at høre at den velhavende vil skylde mere lønningsskat næste år.

In 2018, All earned income between $ 0.01 and $ 128,400 is subject to Social Security’s 12.4% payroll tax. Next year, earned income up to $ 132,900 will be subject to the payroll tax – an increase of $ 4,500. This tax cap is tied to the National Average Wage Index, which rose 3.45%, from $ 48,642.15 in 2016 to $ 50,321.89 in 2017. When rounded to the nearest 0.1%, this 3.5% increase was added to the existing $ 128,400 cap, yielding the new $ 132,900 FIG.

For self-employed well-to-do workers, the new earnings cap represents an increase of up to $ 558 in added annual tax. For the wealthy who are employed by someone else (employers are responsible for half of their employees’ payroll tax liability, up to the cap), it’s up to a $ 279 annual increase.

For the small percentage of employees earning more than $ 132,900 In 2019, income above this amount will be exempt from Social Security’s payroll tax. An estimated $ 1.2 trillion in earnings escaped taxation in 2016, per the SSA.

An hourglass that’s halfway through its sand on a table next to a calendar. Image source: Getty Images.

4. The full retirement age will rise, yet again

If you plan to be among the minority who wait to receive their full retirement benefit, then understand that the wait will be a bit longer moving forward. The SSA determines your full retirement age at your birth year. If you do not know your FRA, this SSA table makes it easy to find.

For those people born in 1957 who will be turning 62, the earliest age of eligibility for retired employee benefits, in 2019, the FRA will climb by two months, to 66 years and six months. Dette markerer det tredje år i forveien, at FRA vil stige med to måneder, med dets eventuelle højde på 67 år i 2022 for de som blev født i 1960 eller senere.

To hitting your full retirement age, you will be accepting a permanent reduction to your monthly payment. In other words, you’re not getting 100% of your benefit. Conversely, if you wait until after your full retirement age to start taking your payout, you can actually earn more than 100%.

Image source: Getty Images.

5. Withholding thresholds for early filers have swelled

More good news: The income thresholds for the retirement earnings test are on the rise, once again!

Whether you are aware of this or not, if you enroll for Social Security benefits before your FRA, and you are still working, the SSA can withhold some or all of your benefits, depending on how much you earn each year. In 2018, early filers who will not hit full retirement age this year can earn up to $ 17,040 annually ($ 1,420 a month) without having any benefits withheld. Men for hver $ 2 i indtjening over dette beløb, $ 1 in benefits is withheld. In 2019, this figure is rising to $ 17,640 a year, or $ 1,470 a month.

If you will hit your full retirement age in 2018 but have yet to do so, $ 1 in benefits can be withheld for every $ 3 in earnings above $ 45,360 ($ 3,780 a month). In 2019, this figure is increasing to $ 46,920 a year, or $ 3,910 a month.

In other words, early filers who are still working will be penalized a bit less next year.

It’s also worth mentioning that withheld Social Security benefits are not lost. De returneres i form av en højere månedlig utbetaling når du når din FRA. The retirement earnings test is not applicable to beneficiaries who have reached their full retirement age.

Image source: Getty Images.

6. Disability income thresholds will move higher

Although Social Security is predominantly a program designed to create a financial foundation for low- and middle-income workers during retirement, it is also responsible for providing payouts to around 10 million long-term disabled workers and their immediate families.

I det kommende året vil ikke-blinde Social Security Disability (SSD) mottakere få opp til $ 1,220 per måned, uten at deres fordeler er stoppet. That’s a $ 40-a-month increase from 2018. As for the legally blind, they’ll be able to earn $ 2,040 a month from SSD in 2019, up $ 70 a month from the current year.

Image source: Getty Images.

7. Qualifying for Social Security just became a bit tougher

Lastly, it’s going to be incrementally harder for future generations of beneficiaries to qualify for retirement benefits.

Frequently referred to as an entitlement program, Social Security is anything but that. In realiteten, arbeidere har til å tjene deres fordele ved at fylle 40 livtid arbeidskreditter, eller som maksimalt kan fås per år. These credits are handed out based on your earned income. In 2018, $ 1,320 in income earns a worker a lifetime work credit. Therefore, $ 5,280 in earnings would maximize your work credits for the year. If you do this for 10 years, you will qualify for a Social Security retirement benefit.

In 2019, it will take $ 1,360 in income to earn a work credit, or $ 5,440 (an extra $ 160 in income) to max out Your four work credits for the year.

Big changes are coming to Social Security in 2019, but now you are in the know.

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