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A Social Security cost-of-living (COLA) increase of 5.8% for 2009 was announced on October 16, 2008.
Following are the changes effective January 1, 2009:
2009 SOCIAL SECURITY CHANGES
Cost-of-Living Adjustment (COLA):
Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2007 through the third quarter of 2008, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 5.8 percent COLA for 2009. Other important 2009 Social Security information is as follows:
|
Tax Rate |
2008
|
2009 |
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: |
2008
|
2009
|
|
$102,000
|
$106,800
|
Medicare (HI only)
|
No Limit
|
Retirement Earnings Test Exempt Amounts: |
2008
|
2009
|
Under full retirement age
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.
|
$13,560/yr.
($1,130/mo.)
|
$14,160/yr.
($1,180/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. |
$36,120/yr.
($3,010/mo.)
|
$37,680/yr.
($3,140/mo.)
|
There is no limit on earnings beginning the month an individual attains full retirement age. |
Social Security Disability Thresholds: |
2008
|
2009
|
Substantial Gainful Activity (SGA)
|
Non-Blind |
$ 940/mo.
|
$ 980/mo.
|
Blind |
$1,570/mo.
|
$1,640/mo.
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Trial Work Period (TWP)
|
$ 670/mo.
|
$ 700/mo.
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Maximum Social Security Benefit:
Worker Retiring at Full Retirement Age |
2008
|
2009
|
|
$2,185/mo.
|
$2,323/mo.
|
SSI Resources Limits: |
2008
|
2009
|
Individual
|
$2,000
|
$2,000
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Couple
|
$3,000
|
$3,000
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Estimated Average Monthly Social Security Benefits Payable in January 2009: |
Before
5.8% COLA
|
After
5.8% COLA
|
All Retired Workers
|
$1,090
|
$1,153
|
Aged Couple, Both Receiving Benefits
|
$1,773
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$1,876
|
Widowed Mother and Two Children
|
$2,268
|
$2,399
|
Aged Widow(er) Alone
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$1,051
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$1,112
|
Disabled Worker, Spouse and One or More Children
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$1,695
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$1,793
|
All Disabled Workers
|
$ 1,006
|
$1,064
|
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