We have discussed in past newsletters the 2.8% increase to Social Security beneficiaries in 2019, however, there are more changes to come.  The tax rate will stay the same at 6.2%, but the tax cap will be increasing to $132,900.  This will also increase the maximum monthly Social Security benefit to $2,861, up from $2,788.  While more money is always a plus, we have to remember that the full retirement age is set to go up by 2 months every year until it reaches 67.  The full retirement age for 2018 is 66 and four months.

There are an increasing amount of retirees that find themselves in the workplace whether for financial reasons or a want to continue a career.  Thankfully the income limits will increase as well this year by $600.  If the retiree works over the $17,640 earnings allowed, as of 2019, they will have a $1 deduction from their monthly Social Security Benefit for every $3 that they make over that which is allowed. This only applies for those taking retirement benefits before their full retirement age.

You and your clients can now see their COLA notice online for the first time by signing up on the www.ssa.gov  website.