Money Matters: Social Security changes in 2017

December 30, 2016 01:30

Sponsored by NEFE

As the calendar changes to a new year, government programs are also changing, including Social Security. With inflation nearly flat, there was no cost of living increase last year. This year, an increase of 0.3 percent was approved, which will amount to about five dollars a month for the average recipient. And along with the change in payments, several other aspects have changed, for beneficiaries and for those paying in to the system.

As US News Money explains, the maximum income subject to Social Security has risen, due to an increase in average wages. The maximum possible month benefit is also going up. There is an increased earning limit, which means more retired people 65 and younger could see their benefits reduced to account for higher incomes. And new rules affect dependents of those who temporarily suspend receiving payments between age 66 and 70 to increase later benefits.
To help your listeners/viewers/readers understand the changes to Social Security taking effect in 2017, talk with financial planners in your market. They can come up with specific examples to explain how the changes would impact people at different income levels, those who continue to earn income after retirement and those who delay retirement until age 70.

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