Many Americans rely on their Social Security benefits to survive after retirement. Therefore, it’s critical to stay up-to-date on the yearly changes and understand how they’ll affect you. As your respected Massachusetts elder law attorney, we have compiled four of the most important changes for 2018:
1. Cost of Living Increase
In 2018, you’ll enjoy the largest cost of living increase since 2012, with a 2% hike. On average, that amounts to an increase of $27 per month. With more money to worry about, it’s the perfect time to reach out to a Massachusetts estate planning lawyer.
2. Full Retirement Age
The full retirement age is set to gradually increase to 67 years old. The specific year you were born will determine exactly when you are eligible for full retirement benefits. If you were born prior to 1954, your retirement age is 66 years. For each year after 1954, your full retirement age increases by two months, until you hit 1960 or later and the full retirement age becomes 67 years old.
3. Taxable Earnings Cap
The taxable earnings cap was also set to rise in 2018. This year, the maximum taxable earnings went up $1,500 to $128,700. This means that if you make more than that, you’ll pay slightly more than you did last year. This is also the amount you’ll need to earn in order to enjoy the maximum benefits upon retirement.
4. Paper Statements
If you need help understanding these changes or to help with estate planning, click here to reach out to us, your premier Massachusetts elder law attorney team.