Like many Americans living on benefits from the Social Security Administration (SSA), you may budget and pinch pennies to get by. When you rely on a fixed income to pay your bills, increases in expenses can be devastating. However, multiple changes to SSA benefits which may positively impact you will take effect in the new year.
3 ways your benefits may increase
Though the increase in SSA benefits may not affect you directly at this point, these changes to Social Security benefits may all set you up for an improved financial situation in the future.
Three ways Social Security benefits will increase for 2019 include:
- If you are still working, yet receive benefits, you may earn another $600 throughout the new year without affecting your benefit payments. Starting Jan. 1, the Social Security earnings limit will increase from 2018’s $17,040 to $17,640 in 2019 for workers who are at least 62 but have yet to reach full retirement age.
- Payout for full retirement age increased to a maximum of $2,861 per month, up $73 per month from this year’s monthly payout. This increases benefits by $876 over the course of a year. Keep in mind your full retirement age is 66 and four months. However, if you turn 66 during 2019, that will increase to 66 and six months.
- The new year brings the largest cost-of-living adjustment (COLA) offered in seven years. Nearly 67 million Americans receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) will receive 2.8 percent more in benefits in 2019. Though your 0.8 percent increase from last year may seem nominal, there was no increase provided for 2016.
As you look ahead, these changes in Social Security may relieve some of your stresses of daily life by providing an opportunity to earn more through employment in addition to the ability to receive an increase in your benefits.