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FJY News to Know #41

Social Security Benefits Withholding Won’t Be Even with the COLA

The Social Security Administration announced last week that benefits and the maximum amount of wages subject to payroll taxes will increase by 1.6% in 2020. However, this is more than a full percentage point less than the 2019 2.8% cost-of-living adjustment (COLA). It marks the smallest annual increase in benefits since 2017. Social Security recipients who delay claiming benefits beyond full retirement age earn an additional 8% per year — for every year they postpone benefits up to age 70. For more perspective on benefits, including the impact on Medicare premiums, read here.

 

General Electric to Freeze Pension Plans for 20,000 Employees

GE said it was freezing its pension payouts for about 20,000 U.S. workers — and offering pension buyouts to 100,000 former employees. The traditional blue-chip company is following other American stalwarts by phasing out its guaranteed retirement.  GE is one of the rare U.S. manufacturers that still allows workers to accrue traditional pension payments. Their pension plan is the second largest, only behind IBM. Click here to read how the company plans on making up for freezing these assets.

 

Federal Reserve to Buy Billions Every Month to Increase Reserves

The Federal Reserve said last Friday that it will start buying about $60 billion per month in Treasury bills to ensure ample reserves in the banking system. They said it doesn’t symbolize a change in monetary policy. The bank also said it would continue to inject cash into lending markets until 2020 — by offering daily operations in the market for repurchase agreements, or repos. The program aims to create reserves that can withstand sudden demands, but also yield economic growth. The U.S. central bank began offering daily repos in mid-September, after the rate, which is viewed as a measure of liquidity, spiked from 2.25% to 10%. Read here to see what impact this will have on interest rates.

 

Yes, President Trump is Rich — But How Do His 2020 Rivals’ Net Worth Stack Up?

Although Donald Trump is highly solvent, you might be surprised about the net worth of the other candidates waiting to supplant him. Many people already know that Bernie Sanders is a millionaire, along with his rival Joe Biden. However, Elizabeth Warren is worth more than both — at roughly $12M. John Delaney dwarfs the former three candidates to the tune of a cool $200M. Click here to see who’s worth even more.