For many people, Social Security will play an important role in their retirement financial plan. However, with fairly regular tweaks to the program, it’s important to stay current on the latest updates, especially as you begin to approach retirement age. Here are a few things to be aware of from Shaw & Associates, your Fort Collins CPA:
- The age for full retirement benefits increased slightly in 2017. The full retirement age, which had been 66, was bumped to 66 and two months for those born between January 2, 1955, and January 1, 1956, to include people eligible to apply for early retirement this year. The age will increase by two months every year for the next five years, until it reaches 67 years old.
- Retirees receive a small cost of living adjustment. Following two years in which low inflation meant no cost of living adjustment, Social Security beneficiaries are being promised a 0.3 percent increase this year.
- High earners and the self-employed will pay more. These workers will experience a tax hike in 2017 as Social Security raises its maximum taxable earnings level.
- Earnings limits are up for those who work after retirement. People who opt for early retirement but keep working can earn a little more without having their benefits reduced.
Staying Current on Social Security
These are just a few of the recent changes to Social Security. If you have questions about how the program’s benefits will impact your financial future, don’t hesitate to contact Shaw & Associates, your Fort Collins CPA.