As I had mentioned in a previous blog post Social Security benefits will be going up 3.6% in 2012, the first hike in two years. Here are some other changes for 2012:
- The Social Security wage base will jump to $110,100 (a $3,300 increase).
- In 2011 the Social Security tax rate on employees was lowered 2% to 4.2%. This cut is set to expire on December 31. There is talk now that this may be extended or even reduced further to 3.1%.
- The amount that you can earn while collecting Social Security without losing benefits is also increasing. If you are younger than 66 by the end of 2012 you can earn up to $14,640. If you are turning 66 in 2012 you can earn $38,880 without giving back benefits. After age 66 you can earn any amount.
- The amount of earnings you need in a quarter to earn credit for Social Security will be $1,130 in 2012. You need at least 40 credits to be eligible for Social security benefits.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).
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