Many Americans who are almost facing retirement take Social Security very seriously. Social Security has similarities in the way workers are taxed and how benefits are totaled up and paid. There are however certain changes which take place. This is the major reason why people keep up with annual changes in the program. Below are 7 changes to Social Security you need to know about;
Full Retirement Age Is Greatly Accelerating For Most Suitable Seniors
Seniors born after 1960 will have to wait a little longer to start enjoying their benefits. The FRA for Social Security benefits has been 66 years of age for a long time.. This will however be altered and increased to 67 years of age. Also, those born in 1954 or earlier will still have their full retirement at 66 years old. Those however born after will get their full retirements benefits between 2-10 months more.
Broad Cost-Of-Living Adjustment (COLA)
Inflation automatically leads to increment in Social Security benefits through a higher cost-of-living. Furthermore, there has been a 2% increment in 2018 because of depressed rising prices experienced during economical improvement.Unfortunately, there might be premium increases for seniors benefiting from Medicare Part B, The 2% increase is however historically low compared to the 3.8% mean COLA since the year 1975.
Higher Earning Limits
Claiming Social Security before attaining your FRA helps you obtain income up to a certain percentage without having to reduce your benefits.In 2018, if you are making a gross salary of more than $17,040, your withdrawal benefits will definitely be attenuated by $1 for every spare $2 you make. If you reach your FRA year however, things might be slightly different. For all the time period that you stay beneath your FRA, your earning extent will be $3,780. Any amount above that will be deducted by $1 for every $3 you make.
The Rate Of Disability Is Greatly Increasing
The number of Americans claiming disability is rising each day. Besides that, the maximal income of those claiming this benefit has somewhat accumulated compared to the other years. The threshold has been elevated by $10 to $1,180 for non-blind claimers and $20 to $1,970 for blind claimers.
Higher Taxable Net income Cap
The wage income in 2017 was taxable to Social Security by up to a $127,200 threshold. In 2018, higher wage earners will get a tenuous break because the taxable earnings threshold will rise to $128,700 than the other years.
Social Security Credit Increment
Did you know that you need to make 40 earnings credits in your lifespan with no more than four in a single year to qualify for Social Security? This is the case and this year you will be expected to make $1,320 in earnings for each credit.
Most workers will not be able to receive paper statements this year. Those who are over 60 and are not receiving Social Security benefits will receive paper statements. Why is this? There is a new online account referred to as my social security account will help workers check their earnings statements. Therefore, this will help them review their estimated benefits at any given time.