[ad_1]
Social security provides retirement income for more than 43 million retirees and next year the program is expected to undergo significant changes that everyone should be aware of. Here are seven key social security information that could affect you in 2019.
No. 1: A bigger payment
Social security payments will increase by 2.8% in 2019, representing the largest increase in social security income since 2012. This cost-of-living adjustment was determined by calculating the change in the prices of goods and services. services in the third quarter of 2004. 2018 beginning in the third quarter of 2017, using the Consumer Price Index for urban employees and clerical employees (CPI-O). This year, it averaged 246,352 in the third quarter and, in 2017, 239,668 in the third quarter, an increase of 2.8%.
SOURCE OF IMAGE: GETTY IMAGES.
Following the increase in the cost of living, the average monthly social security received by a retired worker will be $ 1,461, an increase of $ 39.64 per month over 2018. The average married couple will receive $ 2,448 per month in 2019, if both individuals receive benefits. However, it is unlikely that you will receive this amount because Social Security calculates each retiree's payment based on their individual earnings history, not the average of all workers.
N ° 2: Taxes also increase
Social security contributions are financed by a wage tax of 12.4% of current workers, divided equally between the employer and the employee, up to a maximum annual amount of earnings. Unfortunately, this figure can also increase, and the amount it increases each year is determined by the evolution of the average Social Security salary index, and not the CPI- W. Since this index has risen by 3.45%, the maximum income subject to payroll taxes will increase by 3.5% (rounded to the maximum) to reach $ 132,900 in 2019.
No. 3: The age of retirement reaches its climax
The age of retirement is the age at which a retired worker can receive 100% of his social security benefits. Apply earlier than the retirement age and your benefits are reduced. claim later and it's increased. In 2019, the age of retirement is set at 66 years and six months for those born in 1957, two months more than in 2018. If you were born in 1957 and you apply for benefits At the age of 62, you will receive 27.5% less than if you have otherwise waited to claim until the age of retirement. In addition, a person born in 1957 who is 70 years old to claim benefits will receive 28% more than she would have received at retirement age.
SOURCE OF IMAGE: GETTY IMAGES.
No. 4: workers will have a break
If you are younger than the retirement age, contribute to Social Security and are still working, you are tested for social security income. In 2019, the maximum amount you can earn without taking this test will increase by 3.5% to $ 17,640. If you earn more than that, Social Security will deduct $ 1 for every $ 2 you earn above this limit.
However, a separate rule applies to people who reach retirement age in 2019. People who reach retirement age in 2019 can now earn up to USD 46,920 in months prior to retirement age, compared to 45,360 USD in 2018. If your earnings exceed this new limit, Social Security will retain 1 USD for every 3 USD above the limit. .
If you fail the income test, any social security will not be lost. Instead, it is added to your work record, so any withholding tax increases the amount of benefits you receive when you reach your retirement age.
N ° 5: Changes in the calculation of the benefit
Social Security calculates your full retirement benefit by adjusting your highest 35-year salary to account for inflation to determine your average inflation-adjusted monthly salary (AIME). Then he submits your AIME to flex points that only give you credit for gains up to specific thresholds.
In 2019, the first curvature point increases from $ 895 in 2018 to $ 926, and from $ 5,397 in 2018 to $ 5,583 for the second flex point. The table below shows the amount of credit you will get for your AIME up to and beyond each point of curvature. For example, if your AIME is $ 5,700, your total benefit based on the age of retirement would be $ 2,341.19.
|
Fixed percentages of revenue used in the calculation of flex points in 2019 |
||
|---|---|---|
|
Up to $ 926 |
Between $ 926 and $ 5,583 |
Above $ 5,583 |
|
90% |
32% |
15% |
Graphic by author.
# 7: Increasing Medicare Part B Premiums
In 2019, Medicare Part B monthly premiums increased from $ 134 in 2018 to $ 135.50. Most Americans pay this premium with their income to Social Security. This increase will therefore reduce by how much the increase in your COLA Social Security Account will be achieved you pay less than $ 134 in 2018 because of the harmless provision of Social Security. This provision has prevented premiums from increasing in dollars faster than Social Security revenues in recent years, but this is only a temporary reprieve. As social security income rises, Medicare Part B members are required to catch up. As a result, some people might see a large portion of their social security increase being paid to Medicare, rather than through their bank account.
[ad_2]
Source link
