Social Security 2019: What You Need to Know
While no new legislation has passed this year that changes the fundamentals of the Social Security program, a number of changes do go into effect automatically, mostly due to inflation adjustments. This article by Mary Hickey of Consumer Reports highlights the changes for 2019: 1.) benefits are going up 2.8%, which is $39 per month more for the average recipient with a current benefit amount of $1,422 per month; 2.) the increase is “real” in that nearly all beneficiaries will see an actual net increase in their checks, as Medicare premiums are increasing only $1.50 per month; 3.) the tax cap rises to $132,900 which means the highest earners will pay 6.2% FICA tax on additional $4,500 in income (which of course yields a higher benefit when it comes time to collect as well); 4.) those turning 62 (born in 1957) in 2019 must wait until 66 and six months (up two months) to attain full retirement age (62 is still the early retirement age); and 5.) early filers who still work can earn $600 more to $17,640 before benefits are deducted. Read the full piece, including potential reform proposals on the horizon, here.