Social Security benefits are changing in 2019. Here’s a brief overview of what this means for you:
- You’ll get more money – As part of the annual cost-of-living adjustment made by the Social Security Administration, beneficiaries will be seeing a 2.8 percent increase (about $39) in their benefit each month in 2019.
- Your income tax cap is rising – Most working people who pay into Social Security are taxed at 6.2 percent per paycheck until their income exceeds the tax cap. The tax cap is being raised for 2019 so that those earning up to $132,900 will pay the 6.2 percent tax into the system before hitting the cap.
- You can earn more – If you’re younger than full retirement age (age 66 for people born in 1943 through 1954), and claim Social Security benefits, you can earn as much as $17,640 per year. Once you hit that amount, $1 will be withheld from your benefit for every $2 you earn above $17,640. On the other hand, if you are turning 66 in 2019 and have signed up for Social Security, you can earn up to $46,920 before $1 is deducted from your benefit for every $3 earned above $46,920 until the month you turn 66. As always, once you reach full retirement age, there is no limit on the amount of money you can earn each year.
- Your maximum benefit is increasing – The maximum Social Security benefit available for a worker who signs up at full retirement age is increasing to $2,861 per month in 2019. This is $73 higher than in 2018.
Interested in learning more about Social Security? Visit our Medicare Learning Center, and check out A Beginner’s Guide to Social Security.
