7 Social Security Facts in 2019 – The Motley Fool
Social security provides pension income to over 43 million pensioners, and next year there are some important changes in the program that everyone should know about. Here are seven important personal information that may affect you in 2019.
No. 1: A larger payment
Insurance payments increase by 2.8% in 2019, which is the largest increase in income from income from income since 2012. This cost situation (COLA) was determined by calculating the price change for goods and services in the third quarter of 2018 from the third quarter of 2017, using the consumer price index for townspeople and office workers (CPI-W). This year, on average, 246,352 in the third quarter and in 201[ads1]7, on average, 239,668 in the third quarter, which represents a 2,8% increase.

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After the COLA increase, the average monthly allowance received by a retired employee will be $ 1 461, up $ 39.64 per month from 2018. The average married couple will receive $ 2,448 per month in 2019 if both people withdraw benefits. However, it is unlikely that you receive that amount because Social Security calculates each pensioner's payment based on their own individual income history, not an average for all employees.
No. 2: Taxes also increase
Social security is paid through a 12.4% payroll tax on current employees, distributed between employer and employee, up to maximum income per year. Unfortunately, this figure can also increase and the amount it increases annually is determined by changes in Social Security's average wage index, not CPI-W. Because this index grew 3.45%, the maximum income amount for payroll tax increases 3.5% (rounds) to $ 132,900 in 2019.
No. 3: Full retirement age is climbing
Full retirement age is the age at which a retired employee can collect 100% of his social security. Claims earlier than full retirement age, and your benefit is reduced; claim later and it is increased. In 2019, the full retirement age is 66 years and six months for persons born in 1957, which is two months older than in 2018. If you were born in 1957 and you require benefits early in the age of 62, you will receive 27.5% less than if you had otherwise expected to claim until the full retirement age. Alternatively, anyone born in 1957 who waits for 70 years to claim benefits, get 28% more than they would receive at full retirement age.

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No. 4: Employees Want to Take A Break
If you are younger than full retirement age, collecting social security, and still working, you are subject to Social Security Income Test. By 2019, the maximum amount you can earn without failing this test will increase 3.5% to $ 17,640. If you earn more than that, Social Security will hold $ 1 for every $ 2 you earn over that limit.
A separate rule applies to people who set the full retirement age in 2019, though. People who reach the full retirement age in 2019 can now earn up to $ 46,920 in the months before their full retirement age, up from $ 45,360 in 2018. If your earnings exceed this new limit, Social Security will hold $ 1 for every $ 3 above the limit .
If you fail the earnings test, any social security that is kept will not be lost. Instead, it will be returned to your work record, so any retrenchments will increase the amount you receive in the benefits when you reach your full retirement age.
No. 5: Changes in Performance Calculation
Social Security calculates full retirement age by adjusting the highest 35 years of income for inflation to determine average inflation-adjusted monthly earnings (AIME). Then it is subjected to AIME to bend points that only give you credit for income up to certain thresholds.
In 2019, the first buoy will increase to $ 926 from $ 895 in 2018 and the second buoy will increase to $ 5,583 from $ 5,397 in 2018. The following table shows how much credit you receive for AIME up to and including each bend point. For example, if your AIME is $ 5,700, your full retirement age fee will be $ 2,341.19.
Fixed Percentage of Income Used in Bend Points Calculation in 2019 |
||
---|---|---|
Up to $ 926 |
Between $ 926 and $ 5,583 |
Over $ 5,583 |
90% |
32% |
15% |
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No. 7: Medicare Part B Prizes Increase
In 2019, Medicare Part B will raise monthly premiums to $ 135.50 from $ 134 in 2018. Most Americans pay this premium out of their social security income and therefore, the increase will reduce how much of the Insurance Insurance COLA raises your pocket next year – especially if you pay less than $ 134 in 2018 due to cash benefits that are harmless. This provision has prevented premiums from increasing in dollar bills faster than income for social security benefits in recent years, but it's just a temporary statement. As income increase increases, Medicare Part B members are required to recover. Therefore, some may see a lot of their increase in social security, go to Medicare, instead of their bank account.