6 changes to Social Security in 2013
Benefit recipients will get a small increase next year, and the maximum amount of earnings subject to the Social Security tax will rise.
This post comes from Emily Brandon at partner site U.S. News & World Report.
Here's a look at the Social Security changes workers and retirees will experience next year:
Bigger monthly payments. Social Security payments will increase by 1.7% in 2013. That's considerably less than the 3.6% cost-of-living adjustment retirees received in 2012. Social Security payments are adjusted each year to reflect inflation as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers. Previous inflation adjustments have ranged from zero in 2010 and 2011 to 14.3% in 1980.
The average Social Security check is expected to increase by $21 as a result of the change, from $1,240 to $1,261 in 2013. Couples will see their benefit payments grow from an average of $2,014 to $2,048.
Payroll tax cut scheduled to expire. Workers will pay 6.2% of their income into the Social Security system in 2013, up from 4.2% in 2012. The temporary payroll tax cut expires at the end of December under current law.
Higher Social Security tax cap. The maximum amount of earnings subject to Social Security taxes will be $113,700 in 2013, up from $110,100 in 2012. About 10 million people will pay higher taxes as a result of the increase in the taxable maximum.
Increased earnings limit. Retirees who work and collect Social Security benefits at the same time will be able to earn $480 more next year before any portion of their Social Security payment will be withheld. Social Security recipients who are younger than their full retirement age (66 for those born between 1943 and 1954) can earn up to $15,120 in 2013, after which $1 of every $2 earned will be temporarily withheld from their Social Security payments.
For retirees who turn 66 in 2013, the limit will be $40,080, after which $1 of every $3 earned will be withheld.
Once you turn your full retirement age, you can earn any amount without penalty and collect Social Security benefits at the same time. At your full retirement age your monthly payments will also be adjusted to reflect any benefits that were withheld and your continued earnings.
Maximum possible benefit grows. The maximum possible Social Security benefit for a worker who begins collecting benefits at their full retirement age will be $2,533 in 2013, up from $2,513 per month in 2012.
Paper checks will end. The U.S. Treasury will stop mailing paper checks to Social Security beneficiaries on March 1. All federal benefit recipients must then receive their payments via direct deposit to a bank or credit union account or loaded onto a Direct Express Debit MasterCard.
Retirees who do not choose an electronic payment option by March 1 will receive their payments loaded onto a prepaid debit card. Most people already receive their benefit payments electronically, and new Social Security recipients have been required to choose an electronic payment option since 2011.
More on US News & World Report and MSN Money
It is Time for change at that level we agree as a nation, what are we waiting for. lets form a group and see to it that congress and senate, all begin in 2013 paying into social security and healthcare and collecting the same benifits as the rest of the nation and its citizens, These people are just employees that have used their position in office to twist laws to bennifit themselves with our money. I say it stops in 2013. if the group is formed and a website posted. lets get to fixing the thieves in congress and senate. Now
It's a pity that our Federal Government will not think twice about spending Billions upon Billions of "OUR" Dollars "WE PUT INTO" on third world countries in hopes they become our alies and thinking for these payment's of money and support they will rush to our rescue when needed. But in reality this rarely happens if at all! (as they laugh at us for the money and support given to them by our Govt.!)
The point is our Fed Government fails and refuses to take care of their > OWN BACKYARD FIRST!> (US!) > Our Federal Governments > #1 Responsibility!!!
Something to think about!...
I SAY THAT OUR SO CALLED GOVERNMENT IS A JOKE, THEY SOULD BE ALL FIRED TO START A CLEAN SLATE, THEY SEEM TO NOT CARE WHAT THEY DO WITH OUR MONEY, AND I DON'T SEE WHY THEY ARE SO CONCERNED ABOUT THERE STATICS WITH THE WOULD AND NOT THERE OWN PEOPLE, THAT'S SAD. EVERYONE PLEASE HELP TO FIRE THESE BUMS
P.S. WITHOUT BENEFITS.
Does anyone realize that if i were to make 1 million dollars this year that I will only be taxed on the first 110 k. Which means 890K of earnings is not taxed...... Wanna fix social security?? Dont put a cap on how much you pay in and put a cap on how much gets paid out. Social security was designed to prevent poverty and welfare. So let all put in the same percent and get back an amount that coincides with social responsibility,
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