2019 COLA Increase Social Security, There are millions of Americans who are receiving social security benefits as financial aid. Social security is one of the biggest and most imperative programs in the United States. Not only retired personnel but widows, children under 18, and the disabled are also taking benefits of social security. The money they receive helps them in supporting their financial needs.
Social security is a program that plays an important role when it comes to fighting the financial hardship of life. If you are new to it you must approach someone who is already receiving social security benefits. This will really help you.
Well, it is time to cheer up a hike in the social security benefits that is going to come into action the soon coming year. This means retirees are going to see a bigger amount on social security checks.
On the other hand, you must be consistent in visiting the website and also enroll in the notification process because of social security changes which means a provision gets updated. No matter if you are soon going to be eligible for social security or you have already applied to it, you must look for updates or you might be losing help. Here we are going to guide you about the 2019 social security updates like social security increase for 2019 and how you can expect to receive them.
2019 COLA Increase Social Security
Social Security 2019 Highlights
- The social security administration has announced the amount of hike for the retires which is 2.8% and will be applicable in 2019.
- Medicare Part B premiums are also going to get bolster and retires will see when they will receive their checks in January 2019.
- Beneficiaries will be informed via 2 medium; firstly login to your social security account or they are going to receive all the documents through the mail.
- 2019 COLA hike is the biggest in the past few years.
- The social security administration has uploaded the COLA policies on the Internet.
What is Social Security?
Social Security is an insurance scheme started by the US federal government in order to serve its people better and with the utmost benefits. It was started during the times of the great depression by President Roosevelt. Since then it has been continuously aiding men, women, and children by providing them with monetary assistance in times of need.
It is administered by the SSA which is the Social Security Administration, an independent authority of the US Government. The SSA provides retirement, disability and survivor benefits in particular. In order to be able to claim such benefits at the need f hour, the citizens pay Social Security taxes on their earnings which are later returned to them as insurance money.
How is the Social Security Scheme financed?
The source of income for the Social Security Scheme mainly includes four factors.
- Taxes on the payroll.
- Income earned from the net interest on the assets of the US Treasuries.
- Taxes that are levied on Social Security benefits.
- The reimbursements on the general funds.
The employee and employer both contribute 6.2 % to the scheme. Therefore the self-employed add 12.4 % of their income to the scheme.
Who all are covered under the SSA?
Almost all citizens of the US are insured under the Social Security Scheme. SSA caters to the needs of the disabled, and survivors and retirement benefits to individuals, their spouses or to their children. The program, on the whole, is called RSDI (Retirement, Survivors, and Disability Insurance). SSA also includes a need-based program for the aged, blind and disabled called the SSI (Supplementary Security Income) program. Another program that it encapsulates is the Medicare program.
2019 social security increase
Recipients can expect a social security raise for 2019 of 2.8%, the largest COLA in past 7 years. In Oct 2018 it was announced by COLA that the retirement benefit is going to increase $39. Because the update is applicable in New Year the average retires are going to receive social security benefit $1,422 and will increase to $1,461 in January 2019.
All the retires who are receiving social security benefits will be happy to get the news as this hike is the biggest boost to the SS benefits since the year 2012. According to the social security administration, the cost of living is announced to be 2.8% from 2019, which is good news for all retirees.
Every year some changes are made and adjustments to the benefits was always a topic of debate. Finally, the update is announced and will soon be in effect. Now more than 67 million Americans are going to receive 2.8% in 2019. Retirees are the most unfortunate ones as they are not provided with the hikes easily. In 2010, 2011 and 2016 the COLA adjustment was 0.
All the retirees who have recently applied for social security retirement benefits will see a real increase in 2019 for the first time. Retirees who are receiving average benefits which are $1,400, will receive an extra $39/month in 2019. Here is the information about the 2019 changes.
Must Read: Things To Do Online For Social Security Benefits
Changes to be introduced in SSA from 2019
As time changes the needs and requirements of the people also change and the SSA has aptly recognized this fact. This is why certain amendments are to be introduced in the Social Security Scheme from 2019 to serve the citizens better and provide them with more benefits. The changes to be introduced are as follows:
COLA 2019 increases
The cost of living adjustment or COLA will increase by 2.8% in 2019 from 2% in 2018 and this is the largest hike in COLA in the last seven years. This is for the CPI-W that is the Consumer Price Index for Clerical workers. For all those who are still working the COLA will offer maximum earnings subject to Social security Tax of around $132,900, a 3.5% increase.
The benefit translates to an additional $39 per month or $468 in a year. For those families where both the members claim COLA benefits the advantages are going to be even greater. Another change from 2019 is that you will be able to view your COLA detail online. The COLA notices will also be mailed this year however in future online the online medium would continue.
Changes in the 401(k) limit
In 2019 the retirement savers would be able to save $500 more to the 401(k) and individual accounts. People with higher incomes would also be able to claim the benefits from both the IRA and the saver’s tax credit. The contribution limit would increase to $19000 from $18500, in 2019, when we consider the 401(k) s, 403(b) s and most 457 plans including the government’s thrift savings plan.
The $500 limit allows you to get more benefits on retirement savings. For employees aged 50, the 401(k) contribution limit, however, remains unchanged at $6000. The older workers can contribute $25000 to 401(k) plans in 2019.
2019 IRA contribution limit
The IRA contribution limit in 2019 has also seen certain changes. The IRA contribution limit will grow by $500 to $6000 in 2019. This extra $500 would compound over the years to give more benefits, if invested, especially to the young workers. For workers aged 50 and above, the IRA contribution limit has not been changed and stays at $1000.
Increase in bend points
When the benefit that you will receive at the retirement age is calculated by the SSA, your highest income in 35 years is adjusted against inflation and then your average monthly income is calculated over the years. The amount then is reduced at specific levels which are referred to as the bend points in your income. The bend points have been increased in 2019. The first one is at $926 from $895 in 2018; the second bend point is at $5583 from $5397 in 2018.
Increase the retirement age by two months
One can get the total benefits of his retirement plan if he waits for the complete retirement age to reach and then claim his amount. Before that age, the benefit is less obvious. The earliest retirement age is 62. For all those turning 62 in 2018 the retirement age would increase to 66 and four months.
Those who turn 62 in 2019 will see their retirement age going up to 66 and 6 months. The retirement age is going to increase by 2 months till it reaches 67 in the end which simply means that for anyone born in and after 1960, the retirement age is set to become 67 now.
Earn 3.5 % more without a reduction
Until the time you are younger than your full retirement age, the SSA administers control on your earnings in a way that you don’t suffer any reduction in your earnings. In 2019 this limit increases to $17640 from $17040 in 2018.
In case your income exceeds this limit the SSA will charge $1 for every $2 you earn over and above this specified limit. It is different for folks retiring in 2019. For them, it will be allowed to earn $46920 till reaching retirement age and then if their income exceeds this limit $1 will be charged for every $3 above the specified limit.
Disability thresholds will increase
The disability thresholds are also going to see a change in 2019. The legally blind will receive $20140 a month and the non-blind will receive $1220 in 2019. These are the changes that will be introduced in the upcoming New Year and will bring more financial aid to the citizens.
How to maximize your social security?
Changes are soon to be introduced and benefits will be served to all, but there are many who want to maximize their social security. Social security does not take place when you are grey-haired. You have to prepare for it a long time ago. If you really want to get a solid check when you reach the valid age to receive social security benefits, then follow these tips
- You must know how social security actually works.( you must have 35 years of earnings)
- You must know what amount you are going to receive. The benefit is 27 dollars a month which is definitely not enough. To get the heightened amount you will need to save more.
- You must know when the right time to reap the social security benefits is. The average age is 60-65, but if you are blessed with patience, then waiting can pay you more. If you wait till 70 it an increase in the amount of 30%.
Taking professional help becomes essential because social security is a complicated process. If you go for professional help they can help you in getting more amounts. They use software is done to get an accurate amount. Social security might be complicated, but not rocket science, and the best part if you have strategies you can get thousands of extra dollars.
What else? Medicare premiums are going up in 2019
Medicare Part B is medical insurance and is part of the actual Medicare services, covers, and supplies that are essential to treat any medical woe. If you are eligible for the Medicare Advantage plan then you are going to receive both Medicare Part A&B benefits through any of the private company that offers insurance and has set a contract with Medicare.
In 2019 the monthly premium is going to be $135.50 according to Medicaid services. There are more than two million beneficiaries are going to pay less than$135.50 premium in 2019 because of the provision “hold harmless”.
If you are covered by Medicare then it is going to increase a bit in the coming year. This is the provision that protects beneficiaries of social security for paying more for part B premiums. In the year 2019, the annual deductible is going to be $185. Medicare part B includes services like
- Home health
- Outpatient hospitals
- Physicians
- Medical equipment
These are the services that are not covered in Medicare Part A. Medicare part A covers skilled nursing aid and inpatient care and home health services. The majority of Medicare beneficiaries skip the premium for Medicare part A as long as they have served their forty quarters of employment.
Requirements to qualify for your 2019 social security benefits
No matter you have recently applied for your benefits or enjoying them for years there are few requirements that every beneficiary has to fulfill. The foremost requirement is to get your social security card. To get your social security card you will have to fill an official application which you will find on the website of the social security administration.
You can either fill out the form online or get a print of it and fill the form by hand and submit the application in a nearby social security office. Whether you are an adult or admitting a child, a legal immigrant or just born, the requirements are the same.
There are different documents required for identity and age proof. The documents you are going to submit must be certified copies or your original ones. You might also need to visit the social security office in person in any case.
Documents to prove your citizenship
- United States passport
- United States birth certificate
- United States consular birth report
- The United States citizenship/naturalization certificate
Documents to prove your identity
- United States passport
- United states driving license
- Photographs
- Nondriver ID issued by the US
Documents to prove age
- United States passport
- Birth time record from the hospital
- Religion record before 5 yrs age
- Final adoption decree with a time of birth
Documents for non-citizens
- Children adoption documentation from other country and it must be presented & notarized attached with the application.
- Documentation for students in United States
- Immigration status document for immigrants
- Documentation for work eligibility like a work visa
Other documents
- US military card
- Health insurance card
- Employee ID card
- School ID card
- US military card
- These are the essential documents required that one needs to submit to apply for their 2019 social security benefits.
Tips to get more
Most of retirees depend upon social security benefits and this is why 2019 is going to be a rewarding year for the retirement beneficiaries of social security. There are definitely different ways by which retirees’ benefits can be maximized and here are some of them explained
- Take benefits at full retirement age:- according to the experts there are 69% of the beneficiaries who start taking their benefits before they get retired. This means they are going to receive fewer benefits as what is available. This hurry can cost them reduction of 25%.
- Wait till the 70s:- delaying your benefits is definitely going to be rewarding. You can increase your profit by 8%/year which is 32% by the age of 70. The hike is evaluated through simple interest. This hike is also the foundation for all the COLA. This is good news as you are not just going to enjoy more profit, but it is also going to increase more every year.
- Enjoy spousal benefits:- couples can enjoy more social security benefits, but still, spousal benefits are overlooked by many. You need to be married for a year you are eligible for the spousal benefits. Because you are a spouse you are eligible for fifty percent of the benefit on the behalf of wife/husband.
- Reduce taxes:- this can be challenging but there is a way out. One of the easiest ways to minimize your tax benefits is limit the natural income. Here you will need is professional help.
These are the few tips that you can follow to maximize your social security benefits. There are many times when social security beneficiaries can get confused. This is the time when you will need professional assistance. There are social security attorneys who can help you.
After finding out your payment details you can consult an expert to clear your doubts. Before you apply for the social security benefit you must find out about your payment details. You get online data or paper documents via mail.
How to find out your payment details?
As the news has already spread like fire in the jungle retirees are keen to know how many hikes they are going to get. It is extremely simple to know via your social security account. You just have to log in and your COLA adjustment will be present in the message center.
Also, it might take time to access the notice so make sure to try again and again until you get the outcomes. There are thousands of retirees who are accessing online COLA adjustment updates and notices. This might create trouble in accessing your data, but for some time.
According to the SS administration beneficiaries are also going to receive notice through the mail. All the beneficiaries are also going to receive the documents. These are the two ways by which you can receive your social security details. Social Security is going to see various changes in 2019 so be prepared and act smart.
Verdict
Social security benefits for retirees are going to get a hike of 2.8% in 2019 and more than 62 million SS beneficiaries are going to enjoy this hike since January 2019. This is going to be a major hike for the past few years. To retain your 2019 social security benefits log in to your social security account and get all the details. Also, make sure to fulfill all the perquisites so that you can instantly start receiving your benefits. Get ready with your social security card and number.