There may be incoming changes for Social Security. The Motley Fool reports that some of these changes could affect both those claiming Social Security benefits as well as those planning for retirement.
There will be an increase in the maximum taxable earnings cap to $142,800. Those who earn more than this annually could owe up to $632.40 more in payroll taxes.
In addition, the full retirement age is increasing. For those born in 1959, the full retirement age will be 66 years and 10 months old. This will be the 5th consecutive year the full retirement age has increased.
Another change coming to Social Security in 2021 is the increase to COLA. However – besides years of no COLAs – the 1.3% increase ties the 2nd smallest increase since 1975, according to The Motley Fool. And, unfortunately, the low trending COLA increases have had a negative effect on the power of Social Security in recent years.
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