The Social Security Administration has announced Social Security benefits cost of living increases for 2008. In the information pasted below, the first number in each instance is for 2007, and the second number is for 2008.
2008 SOCIAL SECURITY CHANGES
| Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2006 through the third quarter of 2007, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 2.3 percent COLA for 2008. Other important 2008 Social Security information is as follows: |
| Tax Rate |
2007
|
2008
|
|---|---|---|
|
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 Taxable Earnings: |
2007
|
2008
|
|---|---|---|
|
Social Security (OASDI only)
|
$97,500
|
$102,000
|
|
Medicare (HI only)
|
No Limit
|
|
| Quarter of Coverage: |
2007
|
2008
|
|---|---|---|
|
$1,000
|
$1,050
|
| Retirement Earnings Test Exempt Amounts: |
2007
|
2008
|
|---|---|---|
|
Under full retirement age
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit. |
$12,960/yr.
($1,080/mo.) |
$13,560/yr.
($1,130/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. |
$34,440/yr.
($2,870/mo.) |
$36,120/yr.
($3,010/mo.) |
| There is no limit on earnings beginning the month an individual attains full retirement age. | ||
| Social Security Disability Thresholds: |
2007
|
2008
|
|
|---|---|---|---|
|
Substantial Gainful Activity (SGA)
|
Non-Blind |
$ 900/mo.
|
$ 940/mo.
|
| Blind |
$1,500/mo.
|
$1,570/mo.
|
|
|
Trial Work Period (TWP)
|
$ 640/mo.
|
$ 670/mo.
|
|
| Maximum Social Security Benefit: Worker Retiring at Full Retirement Age |
2007
|
2008
|
|---|---|---|
|
$2,116/mo.
|
$2,185/mo.
|
| SSI Federal Payment Standard: |
2007
|
2008
|
|---|---|---|
|
Individual
|
$ 623/mo.
|
$ 637/mo.
|
|
Couple
|
$ 934/mo.
|
$ 956/mo.
|
| SSI Resources Limits: |
2007
|
2008
|
|---|---|---|
|
Individual
|
$2,000
|
$2,000
|
|
Couple
|
$3,000
|
$3,000
|
| SSI Student Exclusion Limits: |
2007
|
2008
|
|---|---|---|
|
Monthly Limit
|
$1,510
|
$1,550
|
|
Annual Limit
|
$6,100
|
$6,240
|
| Estimated Average Monthly Social Security Benefits Payable in January 2008: |
Before
2.3% COLA |
After
2.3% COLA |
|---|---|---|
|
All Retired Workers
|
$1,055
|
$1,079
|
|
Aged Couple, Both Receiving Benefits
|
$1,722
|
$1,761
|
|
Widowed Mother and Two Children
|
$2,192
|
$2,243
|
|
Aged Widow(er) Alone
|
$1,017
|
$1,041
|
|
Disabled Worker, Spouse and One or More Children
|
$1,652
|
$1,690
|
|
All Disabled Workers
|
$ 981
|
$1,004
|
