Recently, the Social Security Administration has announced a 2.8 percent increase in benefits in 2019. This increase is the largest yearly boost since 2012. The change will give an extra $468 annually to the average retired beneficiary. With the costs of living, as well as the costs of medical care, rising, this increase can help the retired or disabled to better prepare for increased cost.
Cost of Living Adjustments
The 2.8% rise in benefits is added to help offset the cost of living adjustments. Things taken into account for this rise can include necessities such as rent/mortgage, food, medical care, utilities, and more. While this may not fully cover the rising costs on those and other expenditures, the increase will help relieve some of the costs
Rising Maximum Earning Subjected to Social Security
For those who are still working, and not collecting from Social Security, the cap for your earnings that are subject to social security collections will increase. The previous maximum was $128,400. The cap has been changed to $132,900; in order to cover the rising benefit rates.
Rising Medicare Premiums
Thankfully, the rise in Medicare Premiums will not eat up too much of the new increase in Social Security Benefits. Medicare Part B Premiums will only rise by $1.50, to a total of $135.50 per month.
For more than 40 years, our firm has been assisting people like you with long term care and estate planning needs. We bring you the knowledge and resources to protect you and your family. Armstrong & Lamberti, PLLC do not provide tax, legal, or accounting advice by articles. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Call 718.477.7700 or contact us online to schedule a free initial consultation with an estate planning attorney at Armstrong & Lamberti, PLLC. We proudly serve Staten Island, Brooklyn and the other boroughs of New York City.