Here are the some Social Security changes you can expect to
change in 2018, social security recipients take a look on following social security raise/increase you
can expect in 2018.
Higher Payments In 2018 (COLA for 2018)
Basically the good news for Social Security recipients, they
will get a 2.0 percent increase in
benefits in 2018, an amount slightly lower than what was expected this summer
but up sharply from the past 2 years. The Social Security Administration (SSA)
has approved a 2% COLA that is cost of living adjustment. That will result in
the average retired worker getting an extra $27 per month. The COLA affects
benefits for more than 61 million U.S. residents, including Social Security
recipients, disabled veterans and federal retirees. That's about one in five
Americans.
By law, the COLA is based on a broad measure of consumer
prices generated by the Bureau of Labor Statistics. Advocates for seniors claim
the inflation index doesn't accurately capture rising prices faced by seniors,
especially for health care.
The 2% (COLA) cost of living adjustment will begin with
benefits payable to more than 61 million Social Security beneficiaries in
January 2018. Increased payments to more than 8 million SSI beneficiaries will
begin on up-coming 29th December 2017. Here the maximum amount of
earnings subject to the Social Security taxable maximum will increase from
$127,200 to $128,700.
The earnings limit for people turning 66 in 2018 will
increase from $44,880 to $45,360. Here they
will deduct $1 from benefits for each $3 earned over $45,360 until the worker
turns full retirement age 66.
Note: There is no limit on earnings for workers who turns
their "full" retirement age.
In short the average monthly social security payment is
expected to increase by $27 from $1377 to $1404 after 2% COLA, in January 2018.
Aged couples who both are receiving benefits will definitely see their payments
climb by $46 from $2294 to $2340, Disabled worker, Spouse and one or more
children will see rise in their payment by $40 from $2011 to $2051 and all
disabled workers will see change in their payment by $24 from $1073 to $1097 these
all increase in benefits changes are done after 2.0 percent COLA affect.
Tax Cap is Higher:
Workers will have to contribute 6.2% of their earnings to
Social Security until their income get exceeds to $128,700 in 2018. The SSA
expects about 12 million peoples to pay max amount of taxes as a result of this
change. The recipients who able to earn more than the taxable maximum will not
have those earnings taxed by Social Security.
Earnings Limits Larger:
Retired persons who work and collect Social Security
benefits at the same time, they will be able to earn slightly more in 2018 than
2017. Recipients who are younger than their full retirement age can earn up to
$17,040 in 2018, which is more ($120) than in 2017, before they will lose a
benefit dollar for each $2 earned above the limit. The earning limit will grow by
$480 to $45,360 for those who will turn their retirement age in 2018, and the
penalty decreases to a dollar withheld for every $3 earned above the limit.
Once you turn your full retirement age there is no penalty for working after
claiming retirement benefits and your benefit will be recalculated to give you
credit for any withheld earnings.
Those who sign up for Social Security before their full
retirement age will receive a reduced payment. Workers with an older full
retirement age also have less opportunity to boost their payments through
delayed claiming.
No More Paper Statements:
The SSA stopped mailing paper Social Security documents to
everyone under age 60 in 2017. If you want to check your earnings history and
get a personalized estimate of your future benefit, you will now need to create
an online my Social Security account.
More Security Features to SSA.GOV website:
New security features have recently been added to the Social
Security website. My Social Security account holders now need to enter a
one-time security code sent to their phone or email address in addition to a
username and password each time they log in. "Two-factor authentication is
safer than just a username and password," says Susan Grant, director of
consumer protection and privacy at the Consumer Federation of America.
New Medicare Cards:
The Centers for Medicare and Medicaid Services will mail out
new Medicare cards without Social Security numbers printed on them beginning in
April 2018. Instead, the new Medicare card will contain a unique combination of
numbers and letters. But other printed materials may still list your number.
"Don't forget that your Social Security number is not just kept on a card.
Social Security numbers may exist on bank account statements, tax documents and
other forms of hard copy documents," says David Almond, a certified public
account and member of AICPA's National CPA Financial Literacy Commission.
"Be sure to properly dispose of these documents and not just blindly throw
them away."
