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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.

By MSN Money Partner Oct 16, 2012 12:23PM

This post comes from Emily Brandon at partner site U.S. News & World Report.

 

U.S. News & World Report logoSocial Security recipients will get slightly bigger checks in 2013. The Social Security Administration also recently announced several other ways the program will be tweaked in the coming year.

 

Image: Social Security Card (© Scott Speakes/Corbis)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

739Comments
Feb 17, 2014 7:54PM
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I Started recieving both social security disability and workers compensation around the same time in 2000 Now all of a sudden SS Has sent me a form to fillout questionoing how much I get from workers comp, cause from what I understand now that you can't get more then 80% of what you were making!

Problem here is I have always recieved both and exceeded it and it was never questioned. Also My SS benefits have increased, between mine and for my children about 600 or 700 hundred dolars for cost of living! Does anyone kmow the likelyhood they'll reduce my wages? One more thing I was hurt on a job for NYC and was only at second or third year pay! You get like a 10,000 increase a year in your fifth year! The injury caused me not to get to that point! I also got medical insurance and a pension that was part of the package but not included in my pay! I am the only one that is insured now! Have to pay for kids and did till very recently divorced for the ex!  Does anyone know the likelihood that they'll reduce it after all this time! I suffer everyday and I survive on it without it if they decreased it not including cost of living increases It could be around $1,100 dollars a month less! That would kill me financially! I'm under water as it is! Someone with real knowledge please respond ASAP!!!! Thank You Gary

Feb 1, 2013 4:55PM
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we all no who pays these salary's and good medical and retirement benefits to these élite leaders the ones who are suppose to look out for us yeah right we the people who work hard and pay there taxes seem to only get the shaft for all they have done. We all know who Paul Revere was and still is and guess who's waiting in the shadows watching us....
Feb 1, 2013 4:53PM
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If anyone reads the U.S. Constitution you will see that SSI was NOT to be touched by our elected Government. That is a part of the Constitution that has been abused by our political junkies for years. If we do anything, we should vote on an amendment to abolish that practice. If we collected all the IOU's the government owes SSI it would be very self sufficient.

Feb 1, 2013 4:51PM
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 Giving Social Security and Medicare to people who come to our country and have never worked is called "democratic votes"............This is how Obama got elected.
Jan 21, 2013 8:48PM
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I don't understand how people can say they can't work so they get SS disability and work under the table.  But yet when Ido get to retire there will be no money left.  I didn't know that if you have your self admitted to mental institutes 3 times you are considered you can't work. Oh but yes she can because she just works under the table and the worse part is that the owner gives her clothes instead of cash, oh but she still gets some cash but not enough that it will hurt her SS check. She also gets her meds 1.00 each. I pay 50.00 wkly for insurance that doesn't pay anything until I use my 2000.00 deductible. How sad our as system has become. People wonder why we have no money in ss.  I can go to about 10 houses today that I know where they don't work they get SS.  THAT MAKES ME SICK TO THINK I HAVE TO GO WITHOUT A LOT OF MEDICAL CARE BECAUSE OF THOSE WHO DON'T PAY AND GET EVERYTHING.  Makes me SICK, wow do I qualify for SS.  Please start checking out some of the young people thatyou ae putting on SS PLEASE.
Jan 19, 2013 1:04PM
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People it USE, that keep putting the incumbents back into off!, Why do you vote for the same person each and everytime you vote.  Vote for a new person, for his salary is not that much as of that date, and they have not become used to spending our money, yes, its out money that we pay the taxes.
Jan 18, 2013 9:33PM
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Justified 530

Your damn right, what you said!   The Politian's would sing a different tune.   Don't forget their raises to.    They would only get it by popular vote.

Jan 18, 2013 7:51PM
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If we can survive on Social Security and Medicare, then the Congress and Senate should also have to have the same amount to live on.

Jan 11, 2013 5:05PM
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Check your facts.  There was no social security "cost of living" increase for retirees in 2012.
Jan 11, 2013 1:54PM
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Raise the contribution to 7% and set conditions on the full retirement age.

I retired at 62. I was an metal worker and I beat the crap out of myself climbing steel and walking four inch bar joist while carrying fifty to hundred lb. sheets in the wind and snow.

I just could do it safely anymore.

I am flabbergasted at those of you who sit in an air conditioned office punching keys on a comp. tell someone who busts his or her **** in the heat and cold earning in a year what you earn in a month how I should work and how long I should work.

People complain about congress men and women and what they have to say and what they do.

Me I don't blame them for the most part.

I mostly blame the men and women on cable news chann. and news paper and blog writers.

All they do is complain and bitch when in my opinion if one set a chimp at a keyboard and let it punch keys for a week one would probably get pertly much the same story.

In my opinion, teachers, K - 8 should be the highest paid people, Base ball, basketball and foot ball the lowest and TV hosts and news paper writers a step above.

All think tank members should have to pay to be heard

Jan 11, 2013 9:20AM
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The current SSA COL adjustment rate of 1.7% is a joke, and does not begin to equal the actual cost of living increase experienced by current recipients!  The increased costs of fuel, utilities, food, insurance, prescriptions, and medical care are more than ten percent for most people, including SSA recipients.  The increases in insurance premiums, "out of pocket", and "Co-Pay" have far exceeded the 1.7 %, and likely equal ten times that for the average person and family.
Oct 26, 2012 9:59AM
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I just recently retired. I've been putting in to s.s. for 46yrs It disgust me to see our governing body stealing from it. Are they paying interest on it???.If i died the day after i retired the government gets to pocket most of it .Xs this by how many retires, if this was to happen to., that's a lot of money. Then you have the federal reserve saying that man is living longer lets raise the retirement age. so now man can work longer till he or she dies & doesn't  get to enjoy it at all. I feel sorry for the next generation of retires putting in to it & not getting anything out of it. Establishment is slowly forcing them to get there own retirement plans 401k ect.ect.ect. this along with s.s. coming out of your pay. WHATS WRONG WITH THIS PICTURE
Oct 26, 2012 7:53AM
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I think what we need to do is start a National Agenda to have ALL Congressmen and Senators be forced into having the SAME retirement AND the SAME Medical coverage that the average Americans will recieve.  Alos, their terms should be limited to no longer than 12 years in any case.  Put an amendent to that to include that they CAN NOT vote them selves a rasie until the Budget is balanced.  Lets see who has the courage to forward this.  There are 500+ people in the House and Senate that are controling our lives.  It is up to us and no one else. 
Oct 26, 2012 7:48AM
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I think what we need to do is start a National Agenda to have ALL Congressmen and Senators be forced into having the SAME retirement AND the SAME Medical coverage that the average Americans will recieve.  Alos, their terms should be limited to no longer than 12 years in any case.  Put an amendent to that to include that they CAN NOT vote them selves a rasie until the Budget is balanced.  Lets see who has the courage to forward this.  There are 500+ people in the House and Senate that are controling our lives.  It is up to us and no one else. 
Oct 26, 2012 6:03AM
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Miff Romney looked like a deer caught in the headlights of a Ford Fusion the other night at the debate....

 

Does he NOT HAVE any foreign affairs experience except entering his wife's horse Rafalca in an Olpmpic equestrian event in 2012 ?...

Oct 26, 2012 6:00AM
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Clint Eastwood is no longer Mr Cool.......
Oct 26, 2012 2:00AM
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I retired under Civil Service, and have since carried Blue Cross, under the FEHBP program,  which costs me $185 per month.   Got sick, hospitalized and became Disabled in late 2009.   On recommendation of the hospital I go to,  I applied for Disability Medicare (I do not receive any Social Security, nor ever will, due to being TWO credits short, and the WEP law passed by Congress in 1986 -  it decimates any Social Security I could receive, because I am retired under Civil Service) -  Had to fight for it in Court, which took 2 years.   Medicare had NO basis by which to deny me,  but I had to go through the whole shebang, and the Judge saw it my way.

 

I am probably the ONLY American who has to pay OUT OF POCKET, for my Medicare.  $299.70 per quarter.   But, I got it,  and it stacks well with my Blue Cross.   Here's the punchline:

 

MEDICARE has BETTER COVERAGE, and LOWER COPAYMENTS, than the Blue Cross that I worked 30 years for. 

 

Now, with two stacked policies,  my out-of-pocket expenses are quite low (except for prescriptions).   Instead of getting whacked for $7,500 per year under Blue Cross,  my deductibles and co-pays are just a few handfuls of dollars.   Maybe a thousand or so each year.    It pays to get all the insurance you can.   But, I just wanted to point that out,  to all who decry Medicare:   IT'S BETTER THAN WHAT I COULD GET, THROUGH OPM, AS A RETIRED CIVIL SERVICE EMPLOYEE.    Just putting it in perspective. 

Oct 25, 2012 8:09PM
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It is way past time for a third party. I switched to libertarian party and it is growing every day. Our only hope for good government is to never vote for any incumbent  or a democrat or a republican.

Dump the thief's in every election.

 

 

Oct 25, 2012 5:42PM
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It"s a shame because I know alot of young people nothing physically wrong collecting SS. I am a widow  and I collect way less then them who put almost nothing into ss because of bogus claim. work almost all my life, and no where near collecting what they are. Fix the system kick off bogus claims and SS will have monies for the next generation
Oct 24, 2012 5:36PM
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I just recently retired. I've been putting in to s.s. for 46yrs.It disgust me to see our governing body stealing from it., Are they paying interest on it ???.If i died the day after i retired the government gets to pocket most of it. Xs that by how many retires,if this was to happen to., thats a lot of money. then you have the federal  reserve saying that mans living longer., lets raise the retirement age. Now man can work longer till he or she dies & doesn't, get to enjoy it at all. I feel sorry for the next generation of retires putting  in to it & not getting any thing out fo it.  Establishment is slowly forcing them to get there own retirement plans 401k ect.ect.ect. This along with s.s. coming out of your pay., WHAT WRONG WITH THIS PICTURE.???
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