bc.png

2019's Social Security COLA Announced!

2019's Social Security COLA Announced!

The time has come for another edition of Social Security Announcements. Last year, Social Security recipients received a decent bump of 2.0% and I explained a little bit more of the history of COLAs (cost-of-living-adjustments) and their relationship to Social Security HERE

This year, Social Security will increase by 2.8%. The average Social Security benefit for retired workers is expected to increase by $39 to $1,461/month. Now, everyone’s Social Security plan is different, so your personal situation will be different. First payments with the updated COLA amount will be coming in January of 2019.

Here’s a look at the past 20 years of Social Security COLA adjustments.

Year

COLA

 

Year

COLA

2019

2.8%

 

2009

5.8%

2018

2.0%

 

2008

2.3%

2017

0.3%

 

2007

3.3%

2016

0.0%

 

2006

4.1%

2015

1.7%

 

2005

2.7%

2014

1.5%

 

2004

2.1%

2013

1.7%

 

2003

1.4%

2012

3.6%

 

2002

2.6%

2011

0.0%

 

2001

3.5%

2010

0.0%

 

2000

2.5%

For those still working, the limit on taxing income for social security has increased from $128,400 to $132,900. At a rate of 6.2% (for employees), this would be a $289 increase in Social Security tax for someone maxing out their social security “contribution” (aka tax). In other areas, Medicare does not have a limit. All earned income (wages, or self-employment income) is charged 1.45% on the first $250,000 and then jumps to 3.8% for income after that (for Married Filing Jointly filers).

Head’s up for next week’s post, because we are going to go in depth into Medicare Cost updates as well. I know you can’t wait!

 

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

The financial consultants at Veater Financial Group are registered representatives with, and securities and advisory services are offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.

The LPL Financial representative associated with this website may discuss and/or transact securities business only with residents of the following states: AR, AZ, CA, CO, FL, GA, IA, ID, IL, ME, MO, MT, NC, NM, NV, NY, OK, OR, SD, TX, UT, VA, WA

Website Design For Financial Services Professionals | Copyright 2019 AdvisorWebsites.com. All rights reserved