You have goals. We'll help you get there. Jump right in. We're ready for you!

A Little Extra in 2018 for Social Security Recipients

csquires Blogger

25487_BPNAACMKPP1017_Understaind-SS-Part-2_comm_643px.jpg

 

If you’re already retired – or dreaming of that day – the notion of Social Security keeping up with inflation may have crossed your mind. After all, people claiming benefits get an annual cost-of-living adjustment (COLA).

 

But here’s the thing: there’s no guarantee those COLAs will keep up with inflation, or even a guarantee that there will be one.

 

For the first time in five years, the Social Security Administration (SSA) announced a COLA of at least 2%, which translates to about $27 more each month for the average retired worker in 2018. In 2017, it was just 0.3%, and in 2016 it was zero, zip, zilch.

Next year, the average retired worker is expected to receive about $1,404 a month, according to the Social Security Administration (SSA). Couples who both receive benefits can on average expected $2,340 a month combined.

 

Other adjustments Social Security announced for 2018 include:

 

  • The amount of wages subject to Social Security taxes increased about 1%, from $127,200 to $128,700.
  • Workers claiming benefits before reaching their full retirement age (FRA) may earn up to $17,040 a year (up from $16,920 in 2017) before they surrender $1 in benefits for every $2 in earnings.
  • Workers who reach their FRA in 2018 may earn up to $45,360 (up from $44,880) before they surrender $1 in benefits for every $3 in earnings. (Workers may earn whatever they can without penalty after reaching their FRA).
  • The maximum monthly benefit at FRA rises from $2,687 to $2,788.


Social Security’s retirement estimator can help you calculate your anticipated retirement benefits. If you already receive Social Security benefits, you can estimate your benefits after the 2% COLA by multiplying the gross amount by 1.02.

 

Learn more about Social Security with Transamerica resources at Transamerica.com/SocialSecurity.

 

25487_CMBPP1017

Warning: Misuse of Transamerica name in fraud schemes. Read more.

This material was prepared for general distribution.  It is being provided for informational purposes only and should not be viewed as an investment recommendation.  If you need advice regarding your particular investment needs, contact a financial professional.

Insurance products and services are offered or issued by Transamerica Life Insurance Company, Cedar Rapids, IA; Transamerica Financial Life Insurance Company, Harrison, NY (licensed in New York); Transamerica Advisors Life Insurance Company, Little Rock, AR; Transamerica Premier Life Insurance Company, Cedar Rapids, IA; and Transamerica Casualty Insurance Company, Columbus, OH. Variable products and mutual funds are underwritten and distributed by Transamerica Capital, Inc., or Transamerica Investors Securities Corporation, each a broker/dealer and member of FINRA. Securities and investment advisory services offered by Transamerica Financial Advisors, Inc., a broker/dealer, member of FINRA, SIPC and a Registered Investment Adviser. Investment advisory services focused on the unique needs of individual retirees, retirement plans and their participants offered by Transamerica Retirement Advisors, LLC, a Registered Investment Adviser. References to Transamerica on this site apply to an individual company or collectively to these and other Transamerica companies. This site may not yet be approved by the Departments of Insurance in all states at the time of publication. Transamerica companies are part of the Aegon Group. Copyright 2011 - 2017 Transamerica Corporation, 4333 Edgewood Road NE, Cedar Rapids, IA 52499 - All Rights Reserved. Transamerica does not sponsor, endorse or promote any products or services mentioned

  • COMB0417