Social Security recently announced changes for 2019. While there are many changes from year to year, here are the three with the greatest impact for most workers and retirees.
- Retirees will receive the largest Cost of Living Adjustment in seven years. In 2019, retirees will be receiving a 2.8% raise in their Social Security benefits.
- Higher wage earners will owe more in Social Security tax in 2019. In 2018, all earned income between $0.01 and $128,400 is subject to Social Security’s 12.4% payroll tax. Next year, that amount will increase by $4,500 to $132,900.
- The Full Retirement Age (FRA) will rise, yet again. For those born in 1957, who will be turning 62 (the earliest age to collect benefits), in 2019, the FRA will climb by two months, to 66 years and 6 months. This is the third consecutive year that the FRA will rise by two months, with its eventual peak coming at age 67 in 2022 for those born in 1960 or later.
If you, a family member, or a friend, are looking to better understand Social Security, or are approaching retirement, click here for our Guidebook covering the complex topic of Social Security. If you have friends or family members who are navigating Social Security, please feel free to share this resource with them.
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