If you or someone you care about are (or will be) on Social Security, then you need to stay informed ... especially when it changes.
Recently, the AARP surveyed the changes for 2016 in an article aptly titled "Social Security Changes in 2016."
While you will want to click over to the original article yourself, here is a quick look at the list:
Social Security beneficiaries will not receive a cost-of-living adjustment (COLA) this year?
In fact, if you have been keeping track, this is the third time since 2010 when Social Security recipients have seen no increase.
Your Average Monthly Social Security Benefit.
The maximum monthly benefit for workers retiring at full retirement age is $2,639. The average monthly benefit for all retired workers is $1,341.
No More Claiming Strategies.
Many folks in the past used some popular "file and suspend" claiming strategies.
Consequently, these strategies will be eliminated.
However, eligible couples still have until the end of April 2016 to enter into a claiming strategy before the loopholes are given the ax.
Medicare Premiums Go Up for Some Recipients.
Without a COLA, 70% of Medicare beneficiaries will not enjoy an increase in Medicare Part B premiums.
What about the remaining 30%?
They will be "enjoying" an increase in their base premiums from $104.90 to $121.80 per month.
Disability Benefits Secured.
The trust fund that pays disability benefits was about ready to run out of reserves in 2016, triggering a 20% cut for the nearly 11 million beneficiaries.
However, over the next three years, more payroll tax money will be earmarked for that disability fund.
Full benefits will be secure through 2022.
As with any government "entitlement" program, the sands are ever shifting.
Keep a close eye on Congress and the White House for future changes.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: AARP (December 8, 2015) "Social Security Changes in 2016"