Social Security Changes Coming

I received the following note from a friend who runs AGED, that is Advocates and Guardians for the Elderly and Diabled. They are a stellar organization and provide significant assistance to their clients.   Upcoming Social Security Changes There were many changes made to Social Security which could impact your benefits in 2013. Here are a few that we think are particularly relevant. To view the full list visit Social Security's Announcement on the 2013 changes. Cost of Living Increase Social Security approved a 1.7% cost-of-living (COLA) increase for those receiving monthly Social Security and/or Supplemental Security Income (SSI), beginning December 31, 2012.   For more information about the COLA increase, please visit Social Security's website.    Change in Social Security Credits   As you work and pay taxes, you earn "credits" towards retirement and other benefits. In 2013, the amount of money you have to make to earn one credit increased. Now, it will take $1,160 to earn one credit, an increase of $30 from the previous year. In general, a worker needs approximately 40 credits, or 10 years of work, to be eligible for benefits.   Increase in Retirement Earnings Test Exempt Amounts When individuals receive retirement benefits, but continue to work, there is a limit on what they can earn before they are required to give back some benefits. For 2013, for every $2 in earnings above the new limit of $15,120/year, or $1,260/month, one dollar of benefits will be withheld . It is important to note this only applies until the year the worker reaches full retirement age. For the months up to the month of the birthday, a different formula applies. In 2013, Social Security will hold back $1 in benefits for every $3 that a worker earns above $40,080.   For more information about the changes in the Retirement Earnings Test Exempt amounts, please visit Social Security's website.

For more information you may call me at 407-645-3297, or visit my website at www.aubreylaw.com To contact AGED, visit www.trustaged.org or call AGED at (407) 682-4111.