SOCIAL SECURITY IN 2020
KnowWhat ’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.
taking some benefits at age 62, but they’ll be at reduced monthly payments.
COST OF LIVING
TRUST FUND
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.
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
TAXES
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.
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.
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
HOW TO CELEBRATE CAREGIVERS ON CAREGIVER APPRECIATION DAY Don’t Let Their Work Go Unappreciated
While you might not have heard of it, March 3 is a very important day for millions of Americans. It’s one of two days throughout the year (the other being Nov. 13) designated as Caregiver Appreciation Day. If you know any caregivers, you know they deserve way more than just two days a year to appreciate the work they do. But for now, March 3 is a great opportunity to show your appreciation for the sometimes unpaid and often thankless job caregivers take on. Here are a few ideas for caring for the caregivers you know.
this person, ask them if they would like help writing a letter to their caregiver, thanking them for everything that they do. The time and love that goes into a well written letter, especially from their care recipient, will really show that they’re appreciated — especially if it’s not especially easy for their care recipient to write or dictate a letter.
GIVE THEM THE DAY OFF
As much as gifts and letters can mean to a caregiver, sometimes they might just appreciate a break. Ask them if there’s a way you can help them take a day away from their caregiver responsibilities, either by stepping into the caregiving role yourself or by finding others to help out. That way, your caregiver friend can take a day to catch their breath and come back knowing that their work doesn’t go unnoticed. To all the caregivers reading this, we at Van Dyck Law want to say thank you for all the work you do. It means the world to the loved ones that you care for and to millions of others as well.
GIVE THEM A MEANINGFUL GIFT
Whether it’s a bouquet of flowers or a fancy dinner, gifting a meaningful item or experience to the caregivers you know goes a long way toward showing them that they are appreciated. Take some time to find out the places the caregiver you know enjoys visiting, their favorite foods, or their favorite activities.
HELP THEIR CARE RECIPIENT WRITE THEM A LETTER
Chances are, the first person to recognize the important work that a caregiver does is the person that they’re caring for. If you know
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