Federal Reserve to Raise Interest Rates
Last week, the Fed decided to raise interest rates by half a percentage point to the 4.75-5% range.
Reserve Board member Jerome Powell said “the U.S. banking system is healthy and resilient,” but many wonder how these rates will affect Americans’ borrowing. I am concerned about
The Fed’s goal was to bring inflation down to 2%. It is considered the best place for both private consumption and a strong economy.
The Fed expects inflation to ease to 3.3% by the end of 2023 and to 2.5% next year.
Does Congress Pay Social Security?
Senators and Representatives, as well as Presidents and Vice Presidents, federal judges, and other federal officials and employees are covered by the Social Security Program.
They pay Social Security taxes, just like most Americans.
The Social Security Act of 1935 exempted “services performed in U.S. Government employment” from occupations in which workers paid into the system and received benefits. AARP.
Senators and Representatives were not required to pay Social Security taxes on their salaries in Congress, but they were required to pay them on external income such as speaking fees.
full retirement age, continued
The Social Security Administration (SSA) online calculator To determine your FRA. again, retirement age chart.
Not only will you receive full retirement benefits if you wait until the FRA, but if you delay taking benefits after the FRA, your benefits will increase each year until age 70.
On the other hand, starting early receiptbefore the FRA, the total monthly benefit will be reduced by a small percentage.
How to Determine Full Retirement Age
Full Retirement Age (FRA), sometimes called normal retirement age, is the age at which you are eligible to reach maturity. social security Severance pay.
The year and month you reach your FRA depends on the year you were born.
Prior to 1983, the normal retirement age was uniformly 65, so no calculation was necessary.
In 1983, Congress enacted legislation redefining the FRA.
FRA is now working on a sliding scale to reconcile the fact that people live longer and healthier lives.
of Current FRA It increases by a few months with each birth year until it reaches 67 for those born after 1960. This change applies to everyone born after 1938.
Social Security Wage Limits, continued
For those who reach full retirement age in 2020, the income cap will be raised to $48,600 and fines will be reduced to $1 withheld for every $3 earned over the cap. usa news.
Your benefits will be adjusted after you reach full retirement age, taking into account withheld benefits and ongoing wages.
After reaching full retirement age, you can earn any amount without having to withhold Social Security.
Social Security wage cap revealed
You can work while receiving Social Security benefits at the same time.
However, if you have not reached full retirement age, half of your Social Security benefits may be temporarily deducted.
In 2020, Social Security recipients under full retirement age can earn up to $18,240 before losing $1 in benefits for every $2 earned over the cap. usa news.
