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Social Security Changes in 2017

by Eileen Ambrose, December 2016

  • Social Security Changes in 2017 - Benefits increase slightly
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    Benefits Increase Slightly

    En español | The program’s 60 million beneficiaries will get 0.3 percent more in monthly benefits next year. Retired workers will see a $5 bump on average, to $1,360.  

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  • Social Security Changes in 2017 - High earners pay more taxes
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    High Earners Pay More Taxes

    The amount of earnings subject to Social Security tax in 2017 will increase to $127,200, up from $118,500 this year. This tax hike will affect about 12 million of the 173 million people paying into the system.

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  • Social Security Changes in 2017 - Retirement age inches up
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    Retirement Age Inches Up

    For people born between 1943 and 1954, full retirement age (FRA) is 66. Next year, the FRA will increases to 66 years and 2 months for people born in 1955. This increase will continue each year, reaching 67 years for those born in 1960 or later.

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  • Social Security Changes in 2017 - Earn more without affecting benefits
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    Earn More Without Affecting Benefits

    Taking retirement benefits early while still working can temporarily reduce your monthly check — depending on your annual income. In 2017, for every $2 you earn above $16,920, one dollar of benefits will be withheld. In the year you reach your full retirement age, $1 of benefits will be withheld for every $3 earned above $44,880. Once you reach full retirement age, Social Security will recalculate your benefits to give you credit for those withholdings.

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  • Social Security Changes in 2017 - Goodbye to “File and Suspend”
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    Goodbye to File and Suspend

    Previously, you could claim your retirement benefit and then suspend it, allowing your spouse to receive benefits based on your record while your benefit continued to accrue. Some people were still able to do this for part of 2016, but no one can in 2017. (This new rule doesn’t affect divorced spouse’s benefits.)

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  • Social Security Changes in 2017 - Rise in maximum benefit
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    Rise in Maximum Benefit

    The most a worker retiring at full retirement age in 2017 will receive is $2,687 per month, up $48 from 2016.

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