2020 Social Security Changes
The Social Security Administration announced several changes that start in 2020 that might affect you. They include:
- A 1.6% increase in SS benefit payments.
- Full Retirement Age (FRA) increases for anyone born in 1958 will be 66 and 8 months — a two month increase. The full retirement age will increase by two months in 2021 and again in 2022. By 2022 it will be age 67 for anyone born in 1960 or later.
- The maximum monthly benefit at full retirement age will increase by $150 a month to $3,011.
- The earnings cap is the maximum amount of earned income that is taxed for Social Security. Next year, the cap will rise by $4,800 to $137,700.
- In 2020, you’re allowed to earn $18,240 ($1,520 a month) without any withholding if you haven’t hit your full retirement age. This is up $50 a month from 2019. But if you surpass $18,240, the SSA can withhold $1 in benefits for every $2 in earned income above this threshold.