The Social Security Administration has announced the COLA for 2008. It will be 2.3%, down from the 3.3% COLA for 2007. The following information is from NOSSCR, and the chart below is from the Social Security Administration.
Title II beneficiaries will see the 2.3% increase effective with December benefit payments received in January 2008. SSI beneficiaries will see the increase in their January 2008 payments, received on December 31, 2007.
In 2008, the average monthly Title II benefit for disabled workers will be $1004, and for a disabled worker spouse and one or more children, the average monthly benefit will be $1690. The average benefit for a retired worker will be $1079.
| 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
|
