Know What’s Changing Social Security in 2020
I f 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.
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.
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.
BETTER RETIREMENT, BETTER LADIES’ LUNCHEON
Big Events You Don’t Want to Miss
New Reality in Our Retirement Educational Workshop When: Thursdays, January 23 and 30, 2020 Where: University of North Florida, Adam W. Herbert Center
office at 904-232-8760. Learn the secrets to a stress-free retirement! All clients, friends, guests, and the public are invited. “Galentine’s Day” Luncheon When: Thursday, February 13, 2020 11:30 a.m. —1:30 p.m. Where: TBD This one’s for all the ladies! We’re taking a page from the great Leslie Knope of “Parks and Rec” and throwing a client- appreciation “Galentine’s Day” luncheon. Grab your gal pals and join us for a ladies-only luncheon, complete with food, drinks, and fun! More details to follow. Invitations are mailing soon, so keep an eye on your mailbox!
“I don’t want to run out of money!”
This is the No. 1 fear we hear from our clients on a daily
Wolf Retirement basis. That’s why WRN created New Reality in Our Retirement, an adult education class that covers potential financial threats now and in the future. Get the knowledge you need to build a successful retirement. This is a
two-day course with morning and evening times to suit your schedule. For more information and to register, please call our
2 | 904-232-8760
2 LOCATIONS TO SERVE YOU! Jacksonville & Fleming Island
Made with FlippingBook flipbook maker