More Money in Recipients’ Checks
Social security recipients will see more money in their checks every month starting in January of 2019. The government approved a 2.8 percent increase to cover cost of living adjustments. This is the largest such increase since 2012; it is a $39 monthly increase for the average retiree. Social security payments, by law, have to keep pace with inflation, and recipients saw a 2 percent raise last year.
Increases in High Earner Social Security Contributions
In addition, high earning workers will contribute more tax dollars to social security in 2019. The maximum amount of earnings subject to the social security tax will increase by $4500 in 2019, capping it at $132,900 per year. This will represent a $279increase per year for high wage earners meeting or exceeding the cap. In 2019, every worker will pay 6.2 percent of his/her earnings into the social security trust, but annual contributions are capped at $8,239.80 for people that make over $132,900 per year.
An Older Full Retirement Age
People who will turn 62 in 2019 will have to wait longer to collect their full retirement benefit. The full retirement benefit age for people born in 1957 (and turning 62 in 2019) is will increase to 66 years and 6 months, which is an increase of 2 months from last year. The full retirement age will continue to increase in two month increments each year until it reaches the age of 67 for everyone by 2021.
Higher Earnings Limits for Recipients Still Able Work
There is good news for beneficiaries who continue to work in 2019. Recipients age 65 and younger can earn up to $1470 per month before having any benefits withheld. This represents a $600 annual increase. In the year a beneficiary reaches full retirement age the income limit climbs to $3910 per month. Once an individual is over the full retirement age, there is no limit to how much one can earn and also collect social security benefits.
There are a number of changes to social security payments and benefits taking effect in 2019. If you are hurt, injured or otherwise unable to work, please contact Bailey & Galyen for a free social security evaluation, and let us help you get the benefits you deserve.