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The Law Offices of Martin Taller
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Free consultations. Se Habla Español

Monthly benefits boosted, retirement age increased for 2018

October is an important time of the year for millions of Americans-around 61.5 million people receive Social Security Disability benefits across the country and the Social Security Administration announces changes to benefits in mid-October of every year. As has been mentioned previously, the guidelines for SSD eligibility and payments don't remain static and keeping up with them is essential to ensure compliance with the new rules.

Firstly, California residents will be happy to hear that their maximum monthly benefit will go up in 2018. Social Security Administration has enacted a two percent boost in monthly payments-this cost-of-living-adjustment will represent about $27 more monthly, adding up to around $329 yearly for a retired worker. Though this may not seem like a big jump, but for the majority of the majority of retired Americans who rely on benefits for the majority of their expenses, it could make a huge difference.

The second good news is that those who qualify to receive SSD benefits will also receive a monthly maximum payout increase of $101 monthly. This boost is for those who have worked enough to qualify them for the monthly maximum at full retirement age.

These boosts represent some of the highest seen in the last six years, but they don't come without disadvantages. Firstly, the taxable income cap is expected to rise in 2018, from $ 127,200 to $ 128,700. This means around 12 millions Americans will see a tax increase. Secondly, the full retirement age is also expected to increase in 2018 by two months. Where previously someone born in 1955 would hit full retirement age at 66 years and two months, now someone born in 1966 cannot become eligible until they are 66 years and four months old.

It may be difficult to ascertain right now how the changes will directly impact someone individually, but it is very important to understand ahead of time so one can make the necessary changes to their plans. It may be beneficial to speak to an experienced attorney to know how the changes can affect the benefits that millions rely on.

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The Law Offices Of Martin Taller

2300 E. Katella Ave. Suite 440
Anaheim, CA 92806

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