Key Aspects to Understand for New Social Security Recipients
Monday, 18 March 2024, 10:18
Essential Facts for New Social Security Recipients
Social Security is loaded with rules that can benefit seniors. Understand these key aspects to make informed decisions.
1. Yearly COLA Adjustments
- COLAs: Designed to account for inflation and maintain buying power.
- COLAs are based on recent inflation data, not fixed percentages.
2. Earnings-Test Limits
- Earnings-Test Limit: Mind the yearly limit to avoid withheld benefits.
- Limit changes annually based on your retirement age.
3. Potential Benefit Cuts
- Trust funds expected to run dry by 2034, leading to possible benefit cuts universally.
- Prepare by keeping living costs low and considering part-time work to build savings.
Ensure financial stability by understanding these key points, especially as a new recipient of Social Security benefits.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.