Each and every October, the Social Security
Administration releases its "Fact Sheet" that provides updates on the
system. So, here’s the changes for 2020.
The cost of
living adjustment for beneficiaries or COLA is 1.6% or about $24 more dollars a
month for the average benefit.
For only
the 10th time since Social Security was
signed into law in 1935, the program's full retirement age
is set to increase. This is the age at which a retired worker can collect 100%
of their monthly benefit, as determined by their birth year. In 2020, the full
retirement age will increase by two months to 66 years and eight months for
persons born in 1958.
One of the more interesting quirks about Social
Security retired worker benefits is that they're capped at a certain level.
In 2020, the maximum monthly benefit at full retirement age will increase by
$150 a month to $3,011.
The retirement earnings test allows the SSA to
withhold some or all of your benefits if you've begun taking your payout prior
to your full retirement age, are still working and you surpass set income
thresholds. To keep this simple, for 2020, the amount threshold to be taxed
goes up $50.
These are some of the changes for 2020, if you have
questions call 320-679-5183.
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