In what feels like an election year lifeline to Hillary Clinton, President Obama on Wednesday said that the U.S. should increase Social Security benefits.
In what was loosely called a “campaign stop” in Indiana yesterday Obama said “It’s time we finally made Social Security more generous and increased its benefits so that today’s retirees and future generations get the dignified retirement that they’ve earned.”
And what he said next, comes as no surprise.
“And we can start paying for it by asking the wealthiest Americans to contribute a little bit more. They can afford it.”
What the mainstream media conveniently “forgot” to mention in many of their articles yesterday was that President Obama once supported cuts to Social Security back in December 2012 during the Fiscal Cliff negotiations. During that time Senate Majority Leader Harry Reid, a Democrat, strongly objected to the President’s offer to make cuts to Social Security.
The President’s remarks about the wealthy strongly suggest he will most likely support raising the current cap on earnings that are taxable for Social Security.
How Much Are You Taxed for Social Security?
Today, the first $118,500 of income is taxed meaning the maximum amount an individual would pay in 2016 would be $7,347 (6.2%) The cap usually rises annually to keep pace with inflation though there was no increase for the years 2009-2011 and it has stayed the same since 2015.
Today approximately 64.2 million people receive Social Security benefits with more than 5.4 million people being added each year according to the Social Security Administration website.
As you would expect, about 81% of beneficiaries are age 62 and older, with 9 percent of those being over age 85. And those folks age 62 and older are one of the biggest voting blocks in the country—and they vote as a higher percentage of any other age group.
So whether you agree with the President on this or not, you can’t argue with the timing of his statement in an election year.
Costly Changes to Social Security Signed by
President Obama Took Effect in April 2016
On April 30 of this year costly changes passed by Congress and signed by President Obama last November went into effect, that affect about 27 million people.
Two major loopholes were closed which may have cost you over $47,000 over your lifetime. But this is small chump change when you consider that today, the average couple leaves more than $120,000 in lifetime retirement benefits on the table.
The good news is that changing just one filing strategy can make a huge difference—as much as an extra $415, $845, or even $1,505 every month.
In our new special report 10 Ways to Maximize Your Social Security we’ve simplified Social Security and outlined 10 specific strategies you can still take now to help you get every penny you are owed.
This timely report was written by Matthew Allen, Co-Founder of Social Security Advisors and one of the top Social Security experts in the country.
I’ve arranged for you to get a FREE copy of this report today.
Click here to download your copy now.
Weiss Educational Services