The Social Security Administration has announced cost-of-Living Adjustments for 2007. The information below is from the Social Security Administration Web site.
| Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2005 through the third quarter of 2006, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 3.3 percent COLA for 2007. Other important 2007 Social Security information is as follows: |
| Tax Rate |
2006
|
2007
|
|---|---|---|
|
Employee
|
7.65%
|
7.65%
|
|
Self-Employed
|
15.30%
|
15.30%
|
|
NOTE: The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings.
|
||
| Maximum Earnings Taxable: |
2006
|
2007
|
|---|---|---|
|
Social Security (OASDI only)
|
$94,200
|
$97,500
|
|
Medicare (HI only)
|
No Limit
|
|
| Quarter of Coverage: |
2006
|
2007
|
|---|---|---|
|
$ 970
|
$1,000
|
| Retirement Earnings Test Exempt Amounts: |
2006
|
2007
|
|---|---|---|
|
Under full retirement age
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit. |
$12,480/yr.
($1,040/mo.) |
$12,960/yr.
($1,080/mo.) |
| The year an individual reaches full retirement age NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit. |
$33,240/yr.
($2,770/mo.) |
$34,440/yr.
($2,870/mo.) |
| There is no limit on earnings beginning the month an individual attains full retirement age (65 and 8 months for retirees born in 1941; 65 and 10 months for those born in 1942). | ||
| Social Security Disability Thresholds: |
2006
|
2007
|
|
|---|---|---|---|
|
Substantial Gainful Activity (SGA)
|
Non-Blind |
$ 860/mo.
|
$ 900/mo.
|
| Blind |
$1,450/mo.
|
$1,500/mo.
|
|
|
Trial Work Period (TWP)
|
$ 620/mo.
|
$ 640/mo.
|
|
| Maximum Social Security Benefit: Worker Retiring at Full Retirement Age in |
2006
|
2007
|
|---|---|---|
|
NOTE: For retirees born in 1941, full retirement age is 65 and 8 months; for those born in 1942, it is 65 and 10 months. Full retirement age will gradually increase to age 67 for those born in 1960 and later.
|
$2,053/mo.
(Age 65 and 8 months) |
$2,116/mo.
(Age 65 and 10 months) |
| SSI Federal Payment Standard: |
2006
|
2007
|
|---|---|---|
|
Individual
|
$ 603/mo.
|
$ 623/mo.
|
|
Couple
|
$ 904/mo.
|
$ 934/mo.
|
| SSI Resources Limits: |
2006
|
2007
|
|---|---|---|
|
Individual
|
$2,000
|
$2,000
|
|
Couple
|
$3,000
|
$3,000
|
| SSI Student Exclusion Limits: |
2006
|
2007
|
|---|---|---|
|
Monthly Limit
|
$1,460
|
$1,510
|
|
Annual Limit
|
$5,910
|
$6,100
|
| Estimated Average Monthly Social Security Benefits Payable in January 2007: |
Before
3.3% COLA |
After
3.3% COLA |
|---|---|---|
|
All Retired Workers
|
$1,011
|
$1,044
|
|
Aged Couple, Both Receiving Benefits
|
$1,658
|
$1,713
|
|
Widowed Mother and Two Children
|
$2,098
|
$2,167
|
|
Aged Widow(er) Alone
|
$ 976
|
$1,008
|
|
Disabled Worker, Spouse and One or More Children
|
$1,593
|
$1,646
|
|
All Disabled Workers
|
$ 947
|
$ 979
|
