When Donald Trump ran for president, he promised not to touch Social Security. The massive program provides retirement benefits for Americans who worked all their lives and paid into the system.
But the fact remains that changes are coming and everyone will be affected.
Whether your 25 or 65, 2018 marks a year of change for Social Security. The government slashed taxes for both personal income and corporations. Like it or not, that means Social Security is going to get some changes as well.
What does this mean for retirees? What does this mean for young adults just entering the workforce? Make sure you know what’s going on, so your future is secure.
From News OK:
Whether you are currently receiving benefits, plan to apply this year, or are many years from retirement, at least 1 of these 5 changes to Social Security will affect most every taxpayer in 2018:
[1] Everyone already receiving benefits will see their monthly checks increase by 2 percent, the largest adjustment since 2012…
[2] For those born in 1956, the Full Retirement Age is increasing to 66 and 4 months, up from 66 and 2 months…
[3] If you choose to retire at Full Retirement Age, the maximum benefit you can receive is increasing 3.7 percent, from $2,687 per month to $2,788 per month…
[4] Taxable wage base increasing… In 2017, the first $127,200 was taxed. That cap is increasing to $128,700 in 2018. This means higher income earners will see slightly higher Social Security taxes in their paychecks…
[5] Printed annual statements that detailed your past yearly earnings, and your projected Social Security benefits at early retirement, full retirement, and delayed retirement ages, ended in 2017. Beginning in 2018, the only way to see your benefit projection is by creating a free online account at www.ssa.gov.
The cost of living adjustment will provide more benefits for people currently receiving monthly checks. That is in keeping with what Donald Trump promised many Americans.
The Full Retirement Age is increasing to 66 and 4 months. Might not be important to you now, but when you reach retirement age, you’ll need to know about those extra months. For those born in 1956, be sure to gather all the information you possibly need from Social Security in order to make the right decision on when you need to fully retire and start receiving your retirement benefits.
For those starting out in the workforce, it’s important to know your projected Social Security benefits when you retire. Getting an idea of what you’ll receive, in perhaps twenty to thirty years, can be a huge help. It should encourage you to start saving early and investing. When the time comes for you to retire, you won’t be caught in the lurch. Or worse, be forced to continue working when you’re ready to retire. So opening up a ssa.gov account may benefit you now.
Staying informed on these changes is vital for your prosperity. The government continues to change or alter the way they run these programs. For better or worse, it’s up to you to stay on top of it. Hopefully, we’ll continue to see better changes in the future under the Trump administration.
For now, just keep your eyes open.
Source: News OK
