With more than two decades of experience in the financial services industry, Darcy Bergen is the founder and president of Bergen Financial Group in Peoria, Arizona. A certified retirement financial advisor, Darcy Bergen frequently shares his financial planning knowledge as the host of the live radio show Smart Money, as well as the television show The Money Doctors.
A recent development that may impact your financial planning is the Social Security Administration’s 2019 cost of living adjustment (COLA), which will increase by 2.8 percent. Many retirees may be pleased to hear that this is the largest COLA since 2012. However, it's important to keep in mind that increased earnings may lead to an increase in your income taxes depending how much you earn.
Once you pass retirement age, you can continue to work and still draw Social Security benefits.
When determining your tax rate, your income is counted as one half of your Social Security benefits plus your other earnings. If you earn a combined $44,000 or less filing jointly, you may pay taxes on 50 percent of your benefits. If you earn more than $44,000 filing jointly, the tax rate on your benefits can rise up to 85 percent. These rates can influence how much you would like to work once you reach retirement age.