Social Security Benefits Increase in 2019

Seniors received good news about Social Security. Recipients will be getting a 2.8 percent cost-of-living adjustment (COLA) for 2019, bringing the average monthly benefit up from $1,422 to $1,461.¹

2.8 percent increase

More than 67 million Social Security beneficiaries will see a 2.8 percent increase in their Social Security and SSI benefits in 2019. That's an extra $39 a month, or $468 a year, for anyone living on a fixed income.¹

Cost of living RISING

The Department of Labor’s Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) rises when prices increase for the things the average consumer buys. This means that when prices for goods and services we purchase become more expensive, on average, the COLA increases benefits and helps beneficiaries keep up with the changing cost of living.²

Maximum taxable earnings will increase to $132,900

In 2018, employees were required to pay a 6.2% Social Security tax (with their employer matching that payment) on income up to $128,400. Any earnings above that amount were not subject to the tax. In 2019, the tax rate will remain the same at 6.2%, but the tax cap will increase to $132,900.³

If you work while collecting Social Security benefits you may find all or part of your benefits temporarily withheld, depending on how much you earn. However, those income limits will increase slightly in 2019.³

PRIOR TO full retirement age

The earnings limit for workers who are younger than "full" retirement age (age 66 for people born in 1943 through 1954) will increase to $17,640 in 2019. After that, $1 will be deducted from your payment for every $2 that exceeds the limit.³

the year an individual reaches full retirement age

The earnings limit for people turning 66 in 2019 will increase to $46,920. For every $3 earned over the 2019 limit, your Social Security benefits will be reduced by $1, but it will only apply to money earned in the months prior to hitting full retirement age.³

Full Retirement Age

There is no limit on earnings for workers who are "full" retirement age or older for the entire year.³

NOT DESIGNED TO SUSTAIN RETIREES BY ITSELF​

Social Security will replace about 40% of the average earner's pre-retirement earnings.That's why proactively being involved with workplace retirement plans and other savings vehicles before retirement is imperative.¹

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Citations. 

1  – https://thefinancebuff.com/401k-403b-ira-contribution-limits.html

2 – https://blog.ssa.gov/social-security-benefits-increase-in-2019/

3 – https://www.investopedia.com/retirement/social-security-changes/