These are the key retirement numbers you need to know for 2020

Personal finance

Guido Mieth | DigitalVision | Getty Images

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

That’s because the limits for pre-tax 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

Articles You May Like

White House freeze on federal aid will not affect student loans, Education Department says
Op-ed: Here’s what you need to know about retirement savings if your employer merges or is acquired
Can You Really Switch Medigap And Medicare Advantage Plans Any Time?
Why this China-made BYD Shark pickup is drawing attention in the global truck market
If you’re nearing retirement, these 2025 changes could affect your finances. Here’s what to know

Leave a Reply

Your email address will not be published. Required fields are marked *