When the calendar turns over to 2019 in a few weeks, Social Security will have some new developments. None of them are truly significant, but it is wise to be aware of these modifications as you do your year-end planning.
Here are some changes to be aware of:
Benefits Will Increase. The Cost of Living Adjustment for 2019 will be 2.8%. For the average beneficiary, this amounts to around $400 per year.
You Can Earn More Money If Retired But Not At Full Retirement Age. If you take your Social Security retirement at any age short of Full Retirement Age (FRA), Social Security will reduce your benefit by $1 for every $2 you earn above a set amount. For 2019, that amount is $17,640.
More Of Your Income Will Be Subject to Social Security Taxes. If you are still working, you will pay Social Security taxes on the first $132,900 you earn next year.
It Will Require Slightly More Income To Earn One Retirement/Disability Credit. You need a set amount of quarters to qualify for Social Security disability or retirement. For 2019, you will reap one quarter for each $1,360 you make.
SSI Benefits Will Increase. In 2019, the SSI monthly benefit for an individual will be $771 and the benefit for a couple will be $1,157
The Maximum Retirement Benefit Will Go Up. Social Security has set $2,861 as the highest possible retirement amount for 2019.
You Can Earn More While Disabled. For 2019, Social Security will consider a person earning up to $1,220 per month still eligible for Social Security disability benefits.
The cliche has it that forewarned is forearmed. By knowing what changes Social Security will implement in the coming year, you can better prepare for retirement or disability. If you have specific questions about any of these changes, let me know or speak with your financial professional.
