The government's official position is that there is enough money saved to pay benefits at the currently scheduled amounts until 2035. ... While it's unlikely Congress will do away with Social Security, to close the gap it's going to have to scale back benefits for future recipients, increase taxes, or both.
As a result of changes to Social Security enacted in 1983, benefits are now expected to be payable in full on a timely basis until 2037, when the trust fund reserves are projected to become exhausted.
Social Security does not now—and is unlikely in the future to—provide enough income for a comfortable retirement. If Social Security is reworked by Congress to extend its life, younger workers and high-income earners will likely be the ones to pay for it.
Social security will likely exist in the future. However, one should expect a noticeably smaller payment than what current and past recipients receive or have received. Per a recent Social Security Trustees' report, future recipients can expect a 21% benefit cut that can grow to 27%.
What Is the Social Security Tax Limit? You aren't required to pay the Social Security tax on any income beyond the Social Security Wage Base. In 2021, this limit is $142,800, up from the 2020 limit of $137,700. As a result, in 2021 you'll pay no more than $8,853.60 ($142,800 x 6.2%) in Social Security taxes.
A surviving spouse can collect 100 percent of the late spouse's benefit if the survivor has reached full retirement age, but the amount will be lower if the deceased spouse claimed benefits before he or she reached full retirement age.
In 2021, beneficiaries who are collecting Social Security prior to reaching their full retirement age and continue to work will have any income they earn over $18,960 taxed, an increase of $720 from 2020. One benefit dollar of ever $2 they earn above that limit will be withheld.
The maximum benefit — the most an individual retiree can get — is $3,148 a month for someone who files for Social Security in 2021 at full retirement age, or FRA (the age at which you qualify for 100 percent of the benefit calculated from your earnings history).
When asked when they plan to retire, most people say between 65 and 67. But according to a Gallup survey the average age that people actually retire is 61.
Key Takeaways. Qualifying for Social Security at age 62 requires 10 years of work or 40 work credits. The maximum monthly Social Security benefit that an individual can receive per month in 2021 is $3,895 for someone who files at age 70.
At 65 to 67, depending on the year of your birth, you are at full retirement age and can get full Social Security retirement benefits tax-free. However, if you're still working, part of your benefits might be subject to taxation. The IRS adds the figures for your earnings and half your Social Security benefits.
Social Security payments will grow by 1.3% in 2021. The program will also be adjusted in several important ways that could affect the Social Security payments you receive or how much you pay into the system. Get ready for these Social Security changes coming in 2021: Social Security payments will increase by 1.3%.
SSI Monthly Payment Amounts, 1975-2021
| Year | COLAa | Eligible individual |
|---|---|---|
| 2018 | 2.0% | 750.00 |
| 2019 | 2.8% | 771.00 |
| 2020 | 1.6% | 783.00 |
| 2021 | 1.3% | 794.00 |
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