Social Security recipients can expect some changes this year
Starting this year, the Social Security Administration (SSA) is updating the way it calculates payments to retirees, disabled individuals, and survivors. The affected individuals will generally receive smaller monthly payments starting in 2017. Here’s a look at how the changes will work: The agency will start by calculating the individual’s full retirement age not based on their date of birth, but based on when their full Social Security benefit would have been payable. This means that people who are already past their full retirement age will receive smaller payments. The agency also plans to change the way it calculates the amount of income subject to Social Security taxes. In the past, the SSA based the calculation on an individual’s total earnings over the course of their working life. Starting in 2017, the SSA will instead based the calculation on an individual’s highest earnings in the three years before they filed for benefits. This will affect a greater number of people because it will increase the amount of money that the government collects from high-income earners. The changes will affect individuals who are already receiving benefits, as well as those who will get benefits in 2017 or in later years. If you are affected, you will need to read the