Each and every year the government makes changes to Social Security and Medicare. And this year is no different. To be fair, the changes are small. Monthly benefits for Social Security beneficiaries will, for instance, rise a measly 1.6% in 2020.
Or put another way: The average monthly benefit for all retired workers will rise from $1,479 to $1,503 starting in January, or $18,036 per year. And the average monthly benefit for couples where both are receiving benefits will rise from $2,491 to $2,531, or $30,372 per year. Like we said it’s a small change.
Another change that impacts millions of people: Some 12 million workers will pay about $300 more per year in FICA taxes in 2020 than they did in 2019. Why so? The maximum amount of earnings subject to the Social Security tax will increase to $137,700 in 2020. It’s a small change; it only works out to about $1.20 per workday over the course of the year.
And so when it comes to Social Security it could be said: The more things change, the less you get.
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