2020's Social Security Changes

All your working life, you have paid a lot of money into Social Security. This year, like every year, the Social Security Administration changes the rules and benefits.

Beginning In your 60s you can reap those benefits. 2020 brings a few changes and number one is YOU GET A RAISE!

Social Security expert Devin Carroll says. "Admittedly, it is modest - but it's still an increase! In 2020 the increase is 1.6%." If you're under full retirement age (see links below), you can only earn $18,240 without benefits withheld, except in one case: "Now the other limit only applies in the calendar year you attain full retirement age. In 2020, they allow you to earn much more."

It gets better for people with six figure incomes and the amount of income they pay social security taxes on. "If you make a high income, you don't pay social security taxes on all of your wages." Says Carroll, "In 2020, it's going up to $18,240. And everything after that is NOT taxable for social security purposes." Other changes include:

Monthly benefits will increase - Social Security recipients will get a 1.6 percent cost-of-living adjustment (COLA) in their monthly benefits .

Maximum monthly benefit rises - The maximum monthly benefit a single recipient can get also will grow. That benefit will increase to $3,011 per month.

Earnings limit climbs - If you are between ages 62 and 66 or 67 (full retirement age) and working while also receiving monthly Social Security benefits, in 2020 you will be able to earn up to $18,240 ($1,520 per month) before the Social Security Administration deducts $1 from your benefits for every $2 you earn.The earnings limit disappears once you reach full retirement age.

Click here to see other changes

Click here to see your monthly benefit

Click here to see when you reach full Social Security Benefit age.

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