Those receiving social security benefits are to see a 1.6% increase in their benefits for 2020. This is due to a cost of living adjustment by the Social Security Administration. This increase in the monthly payout will be around $24 for the average retired worker and about $20 for the average disabled worker. In order to get the 100% of their retired monthly benefit, worker’s born in 1958 will have to wait to retire until 66 years and eight months to retire. In addition, the worker’s that hit or exceeded the Social Security earnings cap over the last 35 years will be receiving $150 more each month after full retirement in 2020 as the maximum monthly payout increases from $2,861 to $3,011. However, the upper income working Americans will have to pay out more this next year. The Social Security earnings tax cap on wages will increase from $132,900 in 2019 to $137,700 in 2020.Social Security benefits were originally intended for retired workers; today it provides benefits to the disabled and their families. In 2019, non-blind Social Security disability beneficiaries could earn up to $1,220 a month before ceasing benefits and for blind beneficiaries, it was $2,040. Now in the 2020, those amounts have increase to $1,260 and $2,110 a month respectively. For those who take their social security payouts early while still working are limited to certain income thresholds before their social security benefits that they are receiving, start to be withheld from them. The income threshold for 2020 is $18,240 a year or $1,520 a month and for every $2 over the $18,240 income limit, the Social Security Administration withholds $1 of benefits. For people who wait until full retirement age, the income threshold is $48,600 a year or $4,050 a month and for every $3 earned over the income threshold, $1 of Social Security benefits is withheld. In order to guarantee social security benefits, 40 lifetime credits are required. A maximum of 4 credits can be earned per year. In 2019, $1,360 of earned income equaled one lifetime credits and $5,440 of earned in a year gave you 4 lifetime credits for the year. The amounts for 1 lifetime credit increased to $1,410 of earned income and 4 credits for $5,640.
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