How does the Social Security system work, and how do you decide what's right for you? Well, receiving benefits is an option available to you as early as age 62, but choosing to receive benefits this early may decrease your benefits by up to 30%. Nonetheless, opting for early retirement could lead to increased benefits if you choose to invest them rather than spend them.
The Social Security Administration reviews key numbers each year and usually makes adjustments. In a recent release, the SSA announced what is and is not changing for 2022.
The Social Security Administration typically updates key numbers for the upcoming year in the fall. One of the key numbers for retirees is the cost-of-living change: A 1.3% increase will begin with benefits payable to more than 64 million Social Security beneficiaries in January 2021. Increased payments to more than 8 million SSI beneficiaries will begin on Dec. 31, 2020. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor's Bureau of Labor Statistics.
Here's the good news: You can start taking your Social Security payments as early as age 62. However, it may not be in your best interest to do so, as payments will be less than if you can get by on other income streams. The key to making the right decision is taking into account a variety of factors.
According to the Social Security Administration, Social Security and Supplemental Security Income benefits for more than 67 million Americans will increase 2.8 percent in 2019. Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2018. The Social Security Act ties the annual cost-of-living adjustment to the increase in the Consumer Price Index.
From 401(k) plans to individual retirement accounts to Social Security, the federal government has been busy in recent weeks adjusting numbers for 2018. Whether you're an employee or business owner, senior management or nonexempt staff, these changes may affect how you approach retirement in the coming months and years.
Your spouse dies, and after the initial grief, you find your prescription that never cost a cent before is suddenly priced at $195. Whoa! You go home grumbling to yourself — what do they mean?! Are the benefits that came through your spouse gone?
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