Norton Accounting Services, LLC - January 2020

SOCIAL SECURITY IN 2020 Know What’s Changing

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.

be able to start taking some benefits at age 62, but they’ll be at reducedmonthly payments.

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.

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.

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.

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

Take a Break!

Inspired by The New York Times

Everyone should be able to make pancakes without a boxed mix. This recipe is no-frills fantastic and can probably be made without so much as a trip to the grocery store. Simple Pancakes From Scratch

Ingredients

• • • •

2 cups all-purpose flour 2 tsp baking powder

• • •

2 eggs

1 3/4 cups milk

1/4 tsp salt

Unsalted butter or canola oil, to grease skillet

1 tbsp sugar, optional

Directions

1. Heat a griddle or skillet to medium-low. 2. In a mixing bowl, combine

3. Add some butter or oil to the skillet. If the butter foams or oil shimmers, the temperature is correct. Pour in a pancake of any size, cooking until bubbles form, about 2–4 minutes. 4. Flip and cook other side for 2–4 minutes. Serve warm.

dry ingredients (including sugar if you like a sweeter pancake). In a separate bowl, beat eggs intomilk. Gently stir the liquid ingredients into the dry ones. Mix only until flour is moistened. Clumps are fine.

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