careertech-banking-financial-meeting-analysts.jpg
SUBSCRIBE

Wealth Management

WEALTH MANAGEMENT

Retirement Numbers You Need To Know for 2020

Posted by The Axial Company

These are the retirement numbers you need to know for 2020

With a new year comes a new start, and your retirement is no exception.

That's because the limits for pretax saving have gone up for aspiring retirees. And those already in retirement will see a modest boost to their Social Security retirement benefits, along with increased Medicare Part B premiums.

These charts give you an idea of how these changes may pad or pinch your wallet.

 

Retirement savings

Next year, you will be able to save as much as $19,500 in your 401(k) plan and up to $6,000 in your individual retirement account.

Savers who are age 50 and over will be eligible to put away up to $6,500 more in their 401(k) plans or another $1,000 in their IRAs.

The chart below shows how those limits have changed since last year.

 

Social Security benefits

If you are receiving Social Security benefits, you can expect a modest increase to your checks next year.

That extra 1.6% for 2020 is less than the 2.8% boost retirees received in 2019. But it is in line with the average 1.4% cost-of-living adjustments over the past decade. The changes are calculated based on inflation.

The chart below shows exactly how much of an increase you can expect based on the level of benefits you're receiving.

 

Medicare premiums

You may need to brace yourself for higher costs next year if you are on Medicare.

Standard monthly Part B premiums will increase to $144.60 in 2020, up from $135.50 in 2019.

But how much you will pay depends a lot on your income.

One rule, called the hold harmless provision, prevents individuals from having their Social Security benefits reduced because of higher Medicare premiums.

But many individuals will pay more for their premiums based on income-adjusted amounts.

The chart below shows how much coverage will cost you if you have income in excess of $87,000 individually, or $174,000 if you're married and filing joint tax returns.

 

The accompanying pages have been developed by an independent third party. Commonwealth Financial Network is not responsible for their content and does not guarantee their accuracy or completeness, and they should not be relied upon as such. These materials are general in nature and do not address your specific situation. For your specific investment needs, please discuss your individual circumstances with your representative. Commonwealth does not provide tax or legal advice, and nothing in the accompanying pages should be construed as specific tax or legal advice. Securities and advisory services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services offered through Axial Financial Group are separate and unrelated to Commonwealth.

 

© The Axial Company. All Rights reserved. 5 Burlington Woods, Suite 102 Burlington, Massachusetts 01803 781.273.1400

 

© 2019 CNBC LLC. All Rights Reserved. A Division of NBCUniversal