Social Security is a federally funded program that provides money to persons who are retired or disabled. The details of Social Security law are updated regularly, and some of the changes may impact you and your loved ones, so stay abreast of updates. Here are the facts on three alterations made in 2019.

Updates to Social Security Law You Should Know About

1. Social Security Increased

Some 67 million people receive Social Security in the United States. In 2019, they got a cost-of-living adjustment (COLA) to keep up with inflation—an increase of 2.8%. For the average recipient, this brings the annual amount received from $1,422 to $1,461. The numbers vary slightly depending on factors such as disability, marital status, and dependents.

2. Maximum Earnings Increased

Social Security is funded by taxes. When you get your paycheck, you see these taxes deducted. The current tax rate is 6.2%. The Social Security Administration places a cap on the maximum taxable earnings, however, to ensure that people earning above a certain threshold aren't paying exorbitant sums based on this 6.2% cut. In 2018, that threshold was $128,400, but in 2019, it rose to $132, 900.

3. The “Full” Retirement Age Increased

Social Security is meant to be collected upon “full” retirement since it's supposed to support those who are no longer receiving regular pay. A person can claim their full benefits upon the official retirement age. In 2018, this was designated as 66 years and 4 months. In 2019, it was bumped up to 66 years and 6 months. If you want to claim your full benefits, you have to wait until you hit this age. While you can start claiming partial benefits at age 62, you will then only be able to receive permanently reduced benefits.

Social Security law can be confusing, and the details change every year. Let Fitzpatrick, Skemp & Associates, LLC, of La Crosse, WI, walk you through the latest modifications to ensure you get the benefits you deserve. Our law firm has been serving the local area for over 20 years, providing personalized, knowledgeable legal counsel on everything from Social Security law to workers' compensation cases. Our team has more than 100 years of combined experience. Visit our website to explore practice areas, or call (877) 784-1230 to schedule a meeting with an attorney.