Social Security checks will grow in 2019 as inflation rises

Social Security checks will grow in 2019 as inflation rises

Social Security checks to rise by most since 2012

Retirees who are collecting Social Security retirement benefits have reason to cheer: Your Social Security checks will be larger next year.

The Social Security Administration announced that the cost-of-living adjustment for 2019 will be 2.8 percent.

We recognize you are attempting to access this website from a country belonging to the European Economic Area (EEA) including the EU which enforces the General Data Protection Regulation (GDPR) and therefore access cannot be granted at this time. For any issues, contact [email protected] or call (314) 621-4444.

That is in line with the 2.8 percent increase the Senior Citizens League, a nonpartisan organization, predicted last month.

The Social Security Administration also announced that it is raising the amount that retirement beneficiaries who are still working can earn in 2019 before seeing a temporary reduction in benefits. Workers who are younger than full retirement age (age 66 for people born in 1943 through 1954) will be able to earn up to $17,640 in 2019 – up from $17,040 in 2018 – before Social Security starts to withhold benefits. Social Security will withhold $1 in benefits for every $2 in earnings above that limit for workers receiving benefits before full retirement age.

Uptick in Social Security checks for 2019 as inflation rises

Each year, the Social Security Administration assesses whether there should be an adjustment to benefits, so that their purchasing power keeps up with inflation. The agency uses the Consumer Price Index for Urban Wage Earners and Clerical Workers, CPI-W, from the Bureau of Labor Statistics.

The earnings limit for people turning 66 in 2019 will increase from $45,360 to $46,920. Social Security will withhold $1 from benefits for each $3 earned over that limit until the month the worker turns 66. There is no earnings test after workers reach full retirement age. And once they reach full retirement age, Social Security will adjust their benefits to account for the benefits that were withheld.

This years increase marks the biggest hike since 2012, when the cost-of-living adjustment was 3.6 percent.

Social Security cost of living adjustment for 2019 will be 2.8 percent

For retirees who have recently elected to take Social Security benefits, this could be the first time they see a “real increase” in their monthly checks, Joe Elsasser, president of Covisum, a provider of Social Security timing software, previously told CNBC.

If you have your Medicare premiums paid directly from your Social Security benefits, youll find out your new benefit amount after 2019 Medicare premiums are announced (usually in November). Youll receive that information in the COLA notice that is mailed in December, and you can also find it at the mySocialSecurity Message Center.

For those who are collecting an average Social Security benefit of about $1,400, the 2019 cost-of-living adjustment will amount to an extra $39 per month.

Social Security COLA set for 2.8% increase in 2019

The Medicare Part B premiums for next year have not been announced yet. Estimates peg those premiums at $135.50 in 2019 for those with incomes below $85,000.

Former President Barack Obama floated — but ultimately dropped — a proposal called chained CPI, which would have slowed annual COLAs to reflect penny-pinching by consumers. Behind it is the idea that when the price of a particular good or service rises, people often respond by buying less or switching to a lower-cost alternative.

In the past the boost from the Social Security cost-of-living adjustment has been eaten up for many by higher Medicare premiums.

By law, the COLA is based on a broad index of consumer prices. Advocates for seniors claim the general index doesnt accurately capture the rising prices they face, especially for health care and housing. They want the government to switch to an index that reflects the spending patterns of older people.

More from Fixed Income Strategies: Why retirees tax rates may be higher than they expect If youre married and near retirement, consider this tax-saving strategy What you need to do now before this tax strategy disappears

That is unlikely to happen to as many people this year as it did in 2018, according to Mary Johnson, Social Security and Medicare policy analyst at the Senior Citizens League.

President Donald Trump has repeatedly vowed not to cut Social Security or Medicare. But the government is running $1 trillion deficits, partly as a result of the Republican tax cut bill Trump signed. Mounting deficits will revive pressure to cut Social Security, advocates for the elderly fear.

The number of Social Security beneficiaries with benefits in that range is about 5 million, according to Johnson, though not all of those individuals are necessarily enrolled in Medicare.

“What the COLA should be based on is still a very real issue,” said William Arnone, CEO of the National Academy of Social Insurance, a research organization not involved in lobbying. “Older people spend their money in categories that are going up at a higher rate than overall inflation.”

The boost that Social Security benefits see in 2019 will not make up for the buying power benefits have lost over the years.

WASHINGTON (MarketWatch)- Americans who collect Social Security are expected to received a 2.8% increase in their monthly payouts in 2019, based on an unofficial look at how cost-of-living adjustments are calculated. That would mark the biggest increase in seven years. An official announcement should come soon. The extra benefits kick in on Jan. 1. Annual increases in Social Security are determined every year based on changes in a component of the consumer price index known as CPI-W. The final CPI report on which the calculations are made was released Thursday. Social Security recipients got a 2% cost-of-living adjustment in 2018 and 0.3% in 2017. These annual increases are meant to keep up with inflation.

Your Social Security check will get a boost

“Even though were having the highest COLA since 2012, I think people still express frustration because their costs are still increasing faster,” Johnson said.

Social Security benefits have lost 34 percent of their buying power since 2000, according to a study released by the Senior Citizens League in June. While benefits have increased by 46 percent through cost-of-living increases since 2000, senior expenses have risen 96.3 percent, according to the nonpartisan senior group.

Retiree Danette Deakin, of Bolivar, Missouri, says she feels as though her cost-of-living adjustment is already earmarked for rising expenses. Her Medigap insurance for costs not covered by Medicare is going up, and so is her prescription drug plan. She expects her Medicare Part B premium for outpatient care will also increase, although the government hasnt released that yet.

Social Security benefits rising 2.8 percent, biggest hike in 7 years

Retirees are spending more of their Social Security benefits on health-care costs, according to separate research from the Senior Citizens League released in August.

Medicare premiums and out-of-pocket spending took up one third to one half of Social Security benefits for about 30 percent of retirees, the research found.

Retirees, Disabled Vets Get Biggest Raise in 7 Years for 2019

Individuals who are collecting Social Security benefits will see a 2.8 percent cost-of-living adjustment in 2019, the biggest boost since 2012.

Former President Barack Obama floated — but ultimately dropped — a proposal called chained CPI, which would have slowed annual COLAs to reflect penny-pinching behavior by consumers. The idea behind it is that when the price of a particular good or service rises, people often respond by switching to a lower-cost alternative.

Autonomous vehicles could change everything about the way we travel on the road, particularly during our retirement years.

Trump has repeatedly vowed not to cut Social Security or Medicare. But the government is running $1 trillion deficits, partly as a result of the Republican tax-cut bill the president claims as one of his main achievements. Mounting deficits will revive pressure to cut Social Security, advocates for the elderly fear.

Uptick planned in Social Security | News, Sports, Jobs

Other than emerging market bonds, U.S. investment-grade debt — once a safe haven for investors — has had the worst performance of any major sector of the fixed-income landscape so far this year.

Uncle Sam wont give you a break just because youve decided to hang up your spurs. Heres why you can still see high taxes even after youre no longer working.

Seniors Are Getting Slowly Strangled by Social Securitys Flawed Math—Heres How to Fix It

CNBC Upstart 100 is a new original list of the bright young startups poised to become the great companies of tomorrow.

Financial advisors stress that now is the time for investors to get serious about year-end financial planning checkup.

Individuals who are collecting Social Security benefits will see a 2.8 percent cost-of-living adjustment in 2019, the biggest boost since 2012.

Autonomous vehicles could change everything about the way we travel on the road, particularly during our retirement years.

Coming to a financial transaction near you: blockchain, the underlying technology behind cryptocurrency. Joe Duran, founder and CEO of United Capital, shares his thoughts on the future of this digital ledger.

Uptick in Social Security checks for 2019 as inflation rises | WSB-TV

Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

American Majority CEO Ned Ryuin and Jehmu Greene, former candidate for DNC Chair, debate the differences between the ideologies of capitalism and socialism.


Posted in Clarksville