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.