3 Changes to Social Security in 2020
There are three important changes to Social Security in 2020 that you should know.
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There are roughly 10,000 baby boomers turning 65 every day in this country, so today we’re going to pay Social Security some mind.
Here are three important changes to Social Security that 2020 has brought:
1. The cost-of-living adjustment. This doesn’t happen every year, but most years it does happen to keep pace with inflation. For 2020, the cost-of-living adjustment was an increase of 1.6%. The average monthly benefit Americans previously got was $1,479, but with the increase, the new monthly benefit is $1,503. View our source here.
Your full retirement age depends on the year you were born,
and benefits differ from person to person.
2. The maximum benefit amount you can receive (at full retirement age). The previous maximum was $2,861, but now it’s $3,011.
3. The retirement earnings test exemption. This basically means how much you can earn if you’re still working while taking Social Security. You can still take Social Security if you work, but you have to give some of it back if you don’t pass a certain financial threshold. In the past, the maximum amount you could earn without having to give any Social Security back was $17,640. Now the maximum is $18,240.
View our source for these statistics here.
These changes are for the better, and let’s hope we keep seeing increased benefits in the future. Also, remember that your full retirement age depends on the year you were born, and benefits differ from person to person, so give us a call if you have questions about your situation. I’d be happy to help.
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