If you are an American citizen then you might have heard about the social security, paying taxes or availing the benefits. It is a kind of lifeline provided to the citizens falling in different categories. Are you aware of the 7 changes that are made to the SOCIAL SECURITY in 2018? Well, if not then you have come to the right place.
Social Security is one of the most vital programs developed by the United States government though it was always a matter of debate in the category. August 2017, more than sixty million citizens received the social security benefits and more than 42 million people were retirees. More than 62% of the retirees count on social security benefits as they depend on it as half of their income after retirement. In the mid, an October social security changes were announced which happens annually. Like U.S economy is not static, neither is the tax, payment or edibility that is added to the SOCIAL SECURITY. Here are the 7 biggest changed made to social security in 2018.
1. Monthly payment rose a bit
In the year 2018, you can expect a pretty good hike in your monthly payouts. According to the Social Security administrations, the maximum payout when you become eligible for the retiree social security benefits will increase $101 to $2, 788 a month. At the time of the payout calculation, social security considers the individuals earning and work history. There is a downside as well and that is one 1 out of 10 Americans will be able to receive this recent change in the benefits because it is difficult to earn credits for a 35 years’ time period.
2. SOCIAL SECURITY benefits will get a hike
In the year 2018, the beneficiaries are going to receive a hike of 2% COLA. It is going to be $27 or more a month for the average retirees. It is the best inflationary observed in past 6 years. If one is enrolled in the Medicare social security program or you have part B premiums deducted from the stipend provided by social security, then it I likely that this rise will be eaten up by Medicare.
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3. Retirement age on the rise
The full retirement age is going to rise this year. In the upcoming year, newly eligible retire workers who were born in the year 1956 will have to show some patience until the age of 66 and4 months before they will be able to receive hundred percent of their retirement benefits. That is a 2 month hike from 2017 for the beneficiaries born in 1955. The SOCIAL SECURITY claiming works when you are at the age of 62 and your benefits grow 8% annually till the age of 70's. In simple words, the longer an individual waits the more benefits you are able to receive.
4. Wealthy citizens can own a little more
This is a pretty surprising and exceptional change made in 2018 and everyone should be aware of. If you are an employee of a company, then the half of the social security liability is covered by the company which means 6.2%. This means the majority of the Americans have to pay 6.2% of their income as a tax for the SOCIAL SECURITY program. Wealthy citizens who earn $128,700 can own $93 minimum tax. Income earned beyond and above this amount will remain untouched by the tax.
5. Disability income will get an inch high
If an individual having his income from the social security, then you are also going to face positive changes in your monthly earnings. Social security is not just for retirees, but different categorized individuals can also avail apart of the benefits. In the United States, more than ten million individuals are receiving Social Security disability benefits from Social Security administrations. According to the last year, Press Release people who do not fall into the category of blind disables will get a hike of $10 monthly to $1,180. Those who are legally blind can earn up to $1,970.
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6. Withholding thresholds for early fillers will also climb
The threshold for early fillers is also increasing this year up to $ 10 month or $17, 040 yearly. People who claim their social security benefits at the time their reach their full retirement area also going to see some changes this year. If the social security A is withholding your benefits then not to worry as a higher amount is going to be paid back to you once you crossed the full retirement age.
7. Eligibility for SOCIAL SECURITY got incrementally harder
It is going to be a little bit harder for the employers of Americans to be eligible for the social security benefits after they get retired. First of all, it is important to understand that citizens do not automatically qualify for the Social Security benefits. In fact, they need to earn 40 work credits in their lifetime to gain the maximum social security benefits. Maximum 4 is gained annually by the citizens. In the year 2017, individually were earning credits for every $1,300, but in the year it will now require earning $1,320.
These are the 7 changes in the Social Security benefits which we might see in this year. To know more you must visit https://www.ssa.gov/ where you can check out the updates in the administrations and benefits.
The majority of the senior citizens and others rely on the Social Security benefits and the changes made are going to provide relief to the people. These benefits are designed to support the people for their healthy living. There are different criteria's and requirements involved when it comes to availing Social Security benefits. If you are unaware o the facts, then make sure to visit the Social Security administrations site to get more insights on the aspects. The more you are going to update and learn about your rights the easy it is going to be to apply for the benefits. make sure to visit the site and get 2018 updates.