More recently, another set of two-month incremental increases began a few years ago for those born in 1955. Market data powered by FactSet and Web Financial Group. See you at the top! However, for the person who turned 62 in 2019 instead of 2020, the increase would be slightly greater, with 42 months adding up to a 28% boost. By law, some numbers change automatically each year to keep up with changes in price and wage levels. If you're going to be eligible for Social Security for the first time in 2020, however, there's something you need to know. The Social Security Disability Insurance program, meanwhile, is projected to run out in 2026. This is an increase from 2019, when the limit was $132,900 and the most you could pay was $8,239.80. The intent of waiting was to ensure that those who were close to retirement wouldn't get punished by the law changes at a time at which it was too late for them to do anything about it. Market data powered by FactSet and Web Financial Group. Is It Ever a Good Idea to Invest on Margin? Maurie Backman is a personal finance writer who's passionate about educating others. Staying aware of them is critical to make sure that you don't get any nasty Social Security surprises. Because the full retirement age applying here was 66 and six months, claiming at 62 is just 54 months early. Right now, workers pay that tax on up to $137,700 of earnings, and that threshold changes annually. At the same time, President Trump just signed an executive order calling for the deferment of payroll taxes from September through December of 2020. Under laws that took effect more than 35 years ago, the benefits that you'll receive will be less than what people in a similar position in 2019 received. Let's conquer your financial goals together...faster. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. You'll get 40 months' worth of delayed retirement credits, which will boost your check by 26 2/3%. Those increases will continue until those born in 1960 and later have a full retirement age of 67. The consequences of full retirement age rising by two months aren't immense, which is why it's fair to characterize the move as a stealth Social Security cut. However, someone who turned 62 in 2019 and had the same earnings history and full retirement age benefit would receive slightly more. The cutoff will be released separately for different courses, categories and genders. "Based on CBO's figures, Social Security’s retirement benefit would … TNEA Cutoff 2020 for SSNCE The SSNCE final cutoff will be made available by the institute after the last round of TNEA Counselling. 2020 Update 2020 This update provides information about Social Security taxes, benefits, and costs for 2020. The change in full retirement age affects your benefits no matter when you claim. Copyright, Trademark and Patent Information. Let's conquer your financial goals together...faster. Yet they also needed to ensure the long-term financial security of the program. Dan Caplinger has been a contract writer for the Motley Fool since 2006. Another idea is to raise full retirement age, or the age at which seniors are entitled to their full monthly Social Security benefit based on their respective earnings records. The maximum withholding amount is adjusted each year by a formula based on cost of living increases. As an example, say that you're turning 62 in 2020 and were an above-average earner throughout your career, therefore qualifying for a full retirement monthly benefit of $1,800 from Social Security. That makes the corresponding monthly check $2,304 -- $24 higher every month. Is It Ever a Good Idea to Invest on Margin? That's because 62 is the first age at which most workers can claim retirement benefits from Social Security, and a large fraction of older Americans choose to start getting monthly checks from Social Security as soon as possible. The program, thankfully, has trust funds it can tap to keep up with its scheduled benefits, but once those funds run out of money, benefit cuts will be on the table. Full Retirement Age Has Increased. But how worried should the public really be? Either way, we can expect Social Security to be a hot-button issue as we slowly but surely inch closer to November. For example, say you wait until age 70 to claim. However, the provisions didn't take effect immediately. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world. Her goal is to make financial topics interesting (because they often aren't) and she believes that a healthy dose of sarcasm never hurt anyone. Because your full retirement age is 66 and eight months, retiring at 62 means that you're getting your benefits 56 months early. Stock Advisor launched in February of 2002. When Americans line up to vote in the upcoming election, they'll be considering a number of key issues -- and Social Security's fate is one of them. See you at the top! Slashing Social Security benefits would therefore put a lot of seniors at risk of dipping below the poverty line, and that's a scary thought. In a recent poll by Data for Progress, a progressive think tank, preventing cuts to Social Security benefits ranked highly among voters' priorities, with 54% stating that protecting that income stream is crucial. This data certainly sends a very clear message: Americans value Social Security and want to make sure their benefits aren't at risk of disappearing. If those taxes are paid later on, it won't hurt Social Security too much, but if those deferred taxes are ultimately forgiven -- which the presidents says is his ultimate goal -- it could mean that the program depletes its trust funds much, much sooner than 2035. Meanwhile, 29% said universal healthcare is top a concern, while 26% said raising the minimum wage is a major issue they'll be looking at when they hit the polls . In the coming years, Social Security is anticipating a revenue shortfall as baby boomers leave the workforce in droves and too few younger workers come in to take their place. If you think you can avoid the problem by holding off longer before claiming your Social Security benefits, think again. As part of a compromise, Congress agreed to raise the full retirement age, which at the time was 65. Until then, the candidates can check the previous year’s SSN TNEA cut off to get an idea of the past trends. In her somewhat limited spare time, she enjoys playing in nature, watching hockey, and curling up with a good book. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. Social Security Cuts Are a Major Issue in the 2020 Election, Data Reveals Social Security is facing its share of fiscal challenges, and voters are nervous about it. As a result, you’ll pay no more than $8,537.40 ($137,700 x 6.2%) in Social Security taxes. Democratic candidate Joe Biden wants to see more payroll taxes imposed on higher earners to generate additional revenue for Social Security. Lawmakers are, of course, invested in preventing that scenario, and so a number of proposals have already been introduced to save Social Security from insolvency. In 2020, this limit is $137,700. That will result in your getting a Social Security check each month equal to 71 2/3% of your full retirement amount, or $1,290. Returns as of 11/29/2020. Returns as of 11/29/2020. Cumulative Growth of a $10,000 Investment in Stock Advisor, Social Security Cuts Are a Major Issue in the 2020 Election, Data Reveals @themotleyfool #stocks, 3 in 10 Retirees Say They Weren't Prepared for This Rule, Which Is Making a Comeback in 2021, Back on Track: Don't Be Among the 42% of Workers Worried They'll Never Retire, 4 Easy Ways to Lower Your Living Costs in Retirement, These Tax Moves Could Save You Serious Money -- but You'll Need to Make Them Soon. As an example, say that you're turning 62 in 2020 and were an above-average earner throughout your career, therefore qualifying for a full retirement monthly benefit of … But that date may be pushed up thanks to the ongoing unemployment crisis. Many people spend years looking forward to turning 62. However, some policy makers believe that further increases to Social Security's retirement age could be forthcoming. Social Security has always been a dangerous issue to discuss in Washington, and lawmakers in the early 1980s knew that they were entering a potential minefield. Sometim… The SSN cut off 2020 will be released soon after the exam is conducted and results are declared. That's up two months from the full retirement age of 66 and six months for those who turned 62 in 2019.