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The Social Security Administration announced today that more than 67 million beneficiaries will benefit from a cost-of-living adjustment of 2.8% in 2019. This means the average social security benefit for a retired worker will increase by $ 39 per month to $ 1,461 in 2019, while the average benefit for a retired couple will increase from $ 67 per month to $ 2,448 . It's the biggest COLA since 2011, when it was 3.6%. Last year, benefits increased by 2%.
"This is a relatively healthy increase," said Juliette Cubanski, associate director of the Medicare Policy Program at the Henry J. Kaiser Family Foundation. Nevertheless, she notes that workers will face increases in Medicare Part B and Part D premiums – and income-related surcharges – which all reduce their overall benefits. Part B premiums, which cover physician services and outpatient services, are expected to increase slightly from $ 134 to $ 135.50 per month.
The income surcharges, which apply to the premiums of Parts B and D, apply to individuals with incomes of $ 85,000 and couples jointly reporting an income of $ 170,000. Also new in 2019: a new higher-level surtax for people with incomes of $ 500,000 or more and couples with incomes of $ 750,000 or more; they will pay $ 77.40 per month in addition to the Part D basic premium of $ 33.19 (actual premiums vary considerably from plan to plan). Medicare has already announced supplements to Part D for 2019; Part B supplements will be announced later this fall.
Advocates, including the National Committee for the Protection of Social Security and Medicare, see the increase in COLA as good news, but believe it could be improved by adopting the consumer prices for seniors, based on actual spending patterns of retirees rather than those of consumers. the general population.
The other key element of today's announcement is that the salary base … the maximum amount of earnings subject to social security tax – will increase by 3.5% to $ 132,900 in 2019 up from $ 128,400 in 2018. This means a heavier tax bill for about 12 million high-wage workers. The maximum amount of the social security tax per worker will be $ 16,479.60, a maximum of $ 8,239.80 levied on the salary of a very well paid employee in 2019. Workers and their employers pay each a tax of 6.2% on social security; the self-employed pay both sides of the tax. (The increase in benefits is based on the consumer price index, and a different index measuring wage growth determines annual increases in the wage base.)
The Social Security Administration also announced an income limit for workers under 18 years of age (66 years for those born between 1943 and 1954). Beneficiaries who have not reached the age of full retirement will receive $ 1 in benefits for every $ 2 of earnings over $ 1,470 per month, or $ 17,640 per year. A worker who turns 66 in 2019 can earn up to $ 3,910 a month before his birthday, without losing his benefits. Above this threshold, the worker will lose $ 1 in benefits for every $ 3 earned. Once you reach the age of retirement, you can earn as much as you want without losing any of your social security benefits.
If you get Medicare, you will not get the exact amount of your 2019 Social Security benefits until Medicare premiums are announced. You can check in December if you have an online social security account. This is all you need to know about setting up an online social security account and why you should do it, even if you have not reached retirement age.
Here is an overview of the COLA increase since 2011.
2019: 2.8%
2018: 2%
2017: 0.3%
2016: no increase.
2015: 1.7%
2014: 1.5%
2013: 1.7%
2012: 1.7%
2011: 3.6%
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Credit: Getty Royalty Free
The Social Security Administration announced today that more than 67 million beneficiaries will benefit from a cost-of-living adjustment of 2.8% in 2019. This means the average social security benefit for a retired worker will increase by $ 39 per month to $ 1,461 in 2019, while the average benefit for a retired couple will increase from $ 67 per month to $ 2,448 . It's the biggest COLA since 2011, when it was 3.6%. Last year, benefits increased by 2%.
"This is a relatively healthy increase," said Juliette Cubanski, associate director of the Medicare Policy Program at the Henry J. Kaiser Family Foundation. Nevertheless, she notes that workers will face increases in Medicare Part B and Part D premiums – and income-related surcharges – which all reduce their overall benefits. Part B premiums, which cover physician services and outpatient services, are expected to increase slightly from $ 134 to $ 135.50 per month.
The income surcharges, which apply to the premiums of Parts B and D, apply to individuals with incomes of $ 85,000 and couples jointly reporting an income of $ 170,000. Also new in 2019: a new higher-level surtax for people with incomes of $ 500,000 or more and couples with incomes of $ 750,000 or more; they will pay $ 77.40 per month in addition to the Part D basic premium of $ 33.19 (actual premiums vary considerably from plan to plan). Medicare has already announced supplements to Part D for 2019; Part B supplements will be announced later this fall.
Advocates, including the National Committee for the Protection of Social Security and Medicare, see the increase in COLA as good news, but believe it could be improved by adopting the consumer prices for seniors, based on actual spending patterns of retirees rather than those of consumers. the general population.
The other key element of today's announcement is that the salary base … the maximum amount of earnings subject to social security tax – will increase by 3.5% to $ 132,900 in 2019 up from $ 128,400 in 2018. This means a heavier tax bill for about 12 million high-wage workers. The maximum amount of the social security tax per worker will be $ 16,479.60, a maximum of $ 8,239.80 levied on the salary of a very well paid employee in 2019. Workers and their employers pay each a tax of 6.2% on social security; the self-employed pay both sides of the tax. (The increase in benefits is based on the consumer price index, and a different index measuring wage growth determines annual increases in the wage base.)
The Social Security Administration also announced an income limit for workers under 18 years of age (66 years for those born between 1943 and 1954). Beneficiaries who have not reached the age of full retirement will receive $ 1 in benefits for every $ 2 of earnings over $ 1,470 per month, or $ 17,640 per year. A worker who turns 66 in 2019 can earn up to $ 3,910 a month before his birthday, without losing his benefits. Above this threshold, the worker will lose $ 1 in benefits for every $ 3 earned. Once you reach the age of retirement, you can earn as much as you want without losing any of your social security benefits.
If you get Medicare, you will not get the exact amount of your 2019 Social Security benefits until Medicare premiums are announced. You can check in December if you have an online social security account. This is all you need to know about setting up an online social security account and why you should do it, even if you have not reached retirement age.
Here is an overview of the COLA increase since 2011.
2019: 2.8%
2018: 2%
2017: 0.3%
2016: no increase.
2015: 1.7%
2014: 1.5%
2013: 1.7%
2012: 1.7%
2011: 3.6%
