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If you’re in the appropriate age bracket, Social Security may play a major role in your finances. So, it’s important to know how Social Security will be changing in 2020. Trust Fund Unless Congress takes some drastic actions in the coming months, the current excess trust fund revenue will be depleted by the year 2034. If that happens, Social Security will only be able to pay 79% of the promised benefits from ongoing payroll taxes. You may need to think about what your financial plan would be like with 21% less income. Retirement Age If you haven’t reached retirement yet, this one is important to consider. If you were born after 1959, the full retirement age is now 67 for you. You’ll still be able to start taking some benefits at age 62, but they’ll be at reduced monthly payments. SOCIAL SECURITY IN 2020 Know What’s Changing “A GOOD MANAGER IS A MAN WHO ISN’T WORRIED ABOUT HIS OWN CAREER, BUT RATHER THE CAREERS OF THOSE WHO WORK FOR HIM.” –H.S.M. BURNS In other words, a good manager is one who is loyal not only to their company but also to their team. They care deeply about the people they work with, including their issues outside the office — like how their family is doing, whether they’re in good mental health, and how they’re coping financially. When employees feel like their managers view them as individuals rather than numbers, they’re more engaged, more productive, and happier. The opposite feeling has the opposite effect. Forbes reports that, according to a Gallup poll, “Among employees who strongly agree that they can approach their manager with any type of question, 54% are engaged. When employees strongly disagree, only 2% are engaged, while 65% are actively disengaged.” “IF YOUR ACTIONS INSPIRE OTHERS TO DREAM MORE, LEARN MORE, DO MORE, AND BECOME MORE, YOU ARE A LEADER.” –JOHN QUINCY ADAMS Loyalty is a close cousin to this second managerial necessity: motivation. A manager needs to motivate and inspire the people they manage. According to CareerBuilder, a good manager who’s adept at motivating others can boost morale and increase productivity. “The best managers have a keen eye for areas that could be improved and know how to
approach these issues diplomatically so workers feel encouraged to make productive changes, rather than discouraged by their shortcomings,” CareerBuilder reports.
“THE ART OF COMMUNICATION IS THE LANGUAGE OF LEADERSHIP.” –JAMES HUME
More than perhaps anyone else in the company, a manager needs to have top-notch communication skills. Not only are managers the ones assigned to handle the most difficult clients with grace but they also act as mediators in employee disputes. Managers are also tasked with communicating the company’s goals to employees, a charge that can either fall flat or spur action. As Victor Lipman wrote for Forbes, “Simple communication one can count on goes a long way toward building manager-employee rapport. And rapport builds trust ... trust builds engagement ... and engagement yields productivity.”
Cost of Living Low inflation means that Social Security benefits will only see a minor cost of living increase. This year, it’s expected to be around 1.6%. It’s not major, but if you’re living off Social Security alone, every penny is important. Maximum Benefits Those near the top of the Social Security income scale in 2019 will see an increase in their maximum payout in 2020. The maximum payout for an individual will be capped at $2,861 per month. That translates to $34,332 per year, so consider how that may impact your finances. Taxes How much your benefits are taxed depends on your household income levels. For example, 50% of your benefits will be taxed if you make between $25,000–$34,000 individually or $32,000–$44,000 for married couples. If you’re above that income bracket, then 85% of your benefits will be taxable.
2 • swbwlawfirm.com
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