Adjustments to Social Security went into effect on January 1, 2018 and they can impact those who have already retired or who are approaching retirement. The key highlight is the shifting age for full retirement.
1. Age Adjustment – The earliest age Social Security full retirement benefits is 66 years and two months for those who reached their 62nd birthday in 2017. For individuals who turned 62 in 2018, the age rises to 66 years and four months. The SSA will continue to add two months per year to the full retirement age until reaching the goal of 67 as full retirement age.
2. Cost of Living Adjustment – For 2018, Social Security beneficiaries will receive a 2% increase, the largest increase since the 3.6% raise in 2012.
3. High Taxable Maximum Earnings – The maximum possible benefit for a single worker who begins receiving benefits at full retirement age will go from $2,687 per month to $2,788.
4. Higher Earning Limits – Clients who work while receiving Social Security benefits are subject to limitations on how much they can earn without having their benefits reduced. A beneficiary who is less than full retirement age can earn up to $17,040 in 2018, up from $16,920 in 2017. Those who reach full retirement age in 2018 can earn up to $45,360, up from $44,880, without any reduction to their benefit. Once a beneficiary reaches full retirement age, there is no limitation on earnings.
5. Higher Disability Thresholds – Clients who are legally blind and receive disability benefits will receive a maximum of $1,970 per month, up $20 per month, and no-blind disabled individuals will receive a $10 increase.
Beacon Associates team members are certified financial advisors knowledgeable in Social Security and ready to help you plan for your retirement. Call us today and we can plan to assess your current situation, recommend a plan of action, and implement it so you can enjoy your retirement.
Information gathered from: Social Security Changes