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. 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. Would you like to be a Campbell Wealth Management Ambassador? Would you like access to exclusive CWMAmbassador events?
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.
Inspiring Women Workshop Nannie J. Lee Center Thursday, Jan. 16 at 6:00 p.m. or Tuesday, Jan. 21 at 6:00 p.m. Taxes in Retirement Workshop Jane E. Lawton Center Wednesday, Jan. 29 at 1:00 p.m. or Tuesday, Feb. 4 at 6:00 p.m. Social Security Workshop Great Falls Library Wednesday, Jan. 29 at 6:00 p.m. or Wednesday, Feb. 5 at 6:00 p.m. Upcoming Events
All you have to do is refer a friend. Do you know someone who: • Wants to be better prepared for retirement? • Is looking for a second opinion regarding their portfolio? • Has gone through a major life event (death of a spouse, retirement, etc.)? Call us at ( 571) 800-6371 and let’s set up an introduction! If they are important to you, they are important to us.
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