Social Security Updates for 2019

January 10, 2019

If you’re on Social Security you probably want to know what’s going on this year.  The most relevant change to most people is the cost-of-living increase of 2.8% to benefits.

There are other changes though, so let’s go through them.

The Social Security tax ceiling: In 2019, income up to $132,900 will be subject to Social Security taxes.  That’s a $4,500 increase from 2018.  That means the maximum amount for a person is $8239.80.

Retirement earning cutoff: This year, retirees under the full retirement age can earn up to $17,640 before their Social Security benefits will be reduced.  If you’re past retirement age, then you can earn up to $46,920 before benefits begin to be reduced.

Average benefit: The average monthly benefit is estimated to be $1,461 throughout 2019 for all retired workers.  This is an increase of $39 per month.  Of course, averages are tricky and this may not reflect your situation.

Tax rates: The Social Security and Medicare tax rates aren’t changing between 2018 and 2019.  It’s 7.65% for employees and 15.30% for the self-employed.

If you need help planning out your retirement, including your Social Security benefits, we can help you with that.  Let us know.