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A Social Security cost-of-living (COLA) increase of 2.3% for 2008 was announced on October 17, 2007.
Following are the changes effective January 1, 2008:
2008 SOCIAL SECURITY CHANGES
Cost-of-Living Adjustment (COLA):
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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:
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| Tax Rate |
2007
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2008 |
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Employee
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7.65%
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7.65%
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Self-Employed
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15.30%
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15.30%
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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.
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| Maximum Taxable Earnings: |
2007
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2008
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$97,500
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$102,000
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Medicare (HI only)
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No Limit
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| Retirement Earnings Test Exempt Amounts: |
2007
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2008
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Under full retirement age
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.
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$12,960/yr.
($1,080/mo.)
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$13,560/yr.
($1,130/mo.)
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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.)
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$36,120/yr.
($3,010/mo.)
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| There is no limit on earnings beginning the month an individual attains full retirement age. |
| Social Security Disability Thresholds: |
2007
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2008
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Substantial Gainful Activity (SGA)
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Non-Blind |
$ 900/mo.
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$ 940/mo.
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| Blind |
$1,500/mo.
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$1,570/mo.
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Trial Work Period (TWP)
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$ 640/mo.
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$ 670/mo.
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Maximum Social Security Benefit:
Worker Retiring at Full Retirement Age |
2007
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2008
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$2,116/mo.
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$2,185/mo.
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| SSI Resources Limits: |
2007
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2008
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Individual
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$2,000
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$2,000
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Couple
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$3,000
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$3,000
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| Estimated Average Monthly Social Security Benefits Payable in January 2008: |
Before
2.3% COLA
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After
2.3% COLA
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All Retired Workers
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$1,055
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$1,079
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Aged Couple, Both Receiving Benefits
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$1,722
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$1,761
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Widowed Mother and Two Children
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$2,192
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$2,243
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Aged Widow(er) Alone
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$1,017
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$1,041
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Disabled Worker, Spouse and One or More Children
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$1,652
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$1,690
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All Disabled Workers
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$ 981
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$1,004
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www.socialsecurity.gov
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