Call 619-395-4899 to speak with a licensed insurance agent.

Call 619-395-4899 to speak with a licensed insurance agent.

2017 Brings Four Major Changes to Social Security

Posted by Dhina Valencia, December 26, 2016

For most retirees, Social Security comprises an important part of retirement income. Naturally, you expect for that income to be stable and accessible when you decide it’s time to file for benefits. And for the most part, it will be. But since Social Security is such an enormous, complicated government program, the rules do tend to change over time. It’s important to stay updated on these changes, so that you know what to expect when it’s time to claim your benefits.

The following four changes will be implemented in 2017, and could affect you.

Payments will increase, but only by a small degree. Each year, the Social Security Administration announces a cost of living adjustment (COLA) for beneficiaries. Since COLA is based on the inflation rate, it can fluctuate from one year to the next, and very rarely there is no COLA at all. For 2017, benefits will be adjusted only a tiny amount, with the average beneficiary receiving an extra five dollars per month.

The maximum possible benefit will grow. For 2017, the maximum Social Security benefit (claimed at full retirement age) will increase by 48 dollars, to $2,687 per month. Keep in mind, though, that this is the maximum benefit, and is calculated based on your earnings history.

Married couples face different filing rules. Congress has now closed an old loophole, which allowed a lower-earning spouse to collect spousal benefits while still working, and then switch to a larger benefit based on their own work record. Now, married retirees will automatically receive the higher of their two available benefit amounts, and cannot change their claim at a later date.

Social Security will collect more tax revenue. Currently, workers support the Social Security system by paying 6.2 percent of their annual salaries into the system, up to a certain income cap. In 2017, that income cap will be raised from $118,500 to $127,200. This means about 12 million workers will be paying higher taxes, which will help to keep the program afloat.

Whether or not these changes affect you personally, the lesson to keep in mind is that Social Security rules can and do change over time. Don’t make any assumptions about your benefits, and work with a financial professional to continue planning your retirement income and budget throughout the years.

Need more information on your insurance options?

Contact us online to learn more

Contact Us

Close Accessibility Tools
Accessibility Controls Reset
Content Adjustments
Font Size

Default

Line Height

Default

Content Scaling

Default

Highlight Titles
Highlight Links
Highlight Forms
Align Left
Align Center
Align Right
Focus Mode
Color Adjustments
Desaturate
Monochrome
Contrast

Default

Saturation

Default

Accessibility Statement

Despite our attempts to make this website accessible for everyone, there may still be some pages or sections that are not completely accessible, are in the process of becoming accessible, or do not have a suitable technological solution to make them accessible. Nevertheless, we are always striving to enhance our accessibility by adding, updating, improving its options and features, and incorporating new technologies.

We want to provide our users with the best experience possible, so we strive to support as many browsers and assistive technologies as possible.

If you wish to contact this website's owner, please use the contact form on the website.

Our User Interface Adjustment Options

Font adjustments - With this tool, users can modify font size, style, letter spacing, and line height for improved alignment and readability.

Color adjustments - Users can customize their color contrast profiles to light, dark, desaturated, and monochrome.

Content highlighting - Users can prioritize key elements such as links, forms, and titles.

Content focus - Users can enable focus mode to highlight the current page information based on their mouse movement.

Close