Social Security Benefits to Increase in 2018
Reading Time: 1 MinuteLast Updated: October 13, 2017
When we announce the annual cost-of-living adjustment (COLA), there’s usually an increase in the Social Security and Supplemental Security Income (SSI) benefit amount people receive each month. Federal benefit rates increase when the cost of living rises, as measured by the Department of Labor’s Consumer Price Index (CPI-W).
The CPI-W rises when prices increase, making your cost of living go up. This means prices for goods and services, on average, are a little more expensive. The COLA helps to offset these costs. As a result, more than 66 million Americans will see a 2.0 percent increase in their Social Security and SSI benefits in 2018.
Other changes that will happen in January 2018 are based on the increase in the national average wage index. For example, the maximum amount of earnings subject to Social Security payroll tax will increase to $128,700. The earnings limit for workers younger than “full” retirement age will increase to $17,040 and the limit for people turning “full” retirement age in 2018 will increase to $45,360.
You can find more information about the 2018 COLA here.
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Tags: Cost of living adjustment, Social Security benefits
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Jim Borland, Acting Deputy Commissioner for Communications
Jim Borland, Acting Deputy Commissioner for Communications
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Carol J.
Why am I taxed on a tax, e.g., Social Security payroll tax? For 45 years, I was taxed up to 7.5% of my income for Social Security and now I’m taxed AGAIN on the tax I’ve already paid. Why?
R.F.
Hi Carol, some people have to pay federal income taxes on their Social Security benefits. This usually happens only if you have other substantial income (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return) in addition to your benefits. For further income tax questions, you will need to contact the IRS. Their toll-free number is 1-800-829-1040.
John
I will get an increase of $31.94 and $25 dollars of that will go to pay my Medicare, so my raise is actually only $6.94.
John
Hey, that ( 694 ) was the number of our union.
Glenn C.
When will individual 2018 SS benefit statements be mailed?
R.F.
Thanks for your question. If you’re referring to the cost-of-living adjustment (COLA) notices, those letters usually are mailed during the month of December.
Richard H.
At 74 still working and am to receive $ from a class action lawsuit going on for about 5 yrs. To receive $6,000 in dec and 10,000 more in 2018
How would effect my ss benefits ?
Is this $ CONSIDERED INCOME?
RICH HOSTETTER
R.F.
Thank you for your question, Richard. Regular retirement benefits are based on your previous years of work, your past earnings and are not subject to income and resource limits. Some people have to pay federal income taxes on their Social Security benefits. This usually happens only if you have other substantial income (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return) in addition to your benefits. For further income tax questions, you will need to contact the IRS. Their toll-free number is 1-800-829-1040. We hope this information helps.
Thomas C.
I received my award letter for social security to start in Feb 2018 . It doesn’t show the increase does that show as a separate amount on my statement
R.F.
Thomas, your question is more complex than we can address in this forum. Please call us at 1-800-772-1213 (TTY 1-800-325-0778) between 7 a.m. to 7 p.m., Monday through Friday and speak to one of our representatives, he or she will be able to answer your questions. Generally, you will have a shorter wait time if you call later in the week. Thanks!
Ted H.
something needs to happen to get social security benefits for seniors a one time cost of living raise to catch up what has been taken away from them over the past years, congress should introduce the bill, at once, there has not been a good raise giving out for social security in over a decade ????
ricky a.
i draw 665 a month i draw social security at 62 do i get a raise
Sheryl
I have been on disability for 8 years it nearly pays my bills.i was told i could collect on my husbands ss even if he is not collecting vould help me get higher amount.how do i do this. Did not see form online
Sheryl
JOEP
I just applied for ss and received a letter stating that my first payment would be in February 2018. Will I receive the 2% increase over the amount stated in my acceptance letter or am I locked in to the amount in my letter?
Robert A.
When or how do I get the 2018 Social Security Benefit Award Letter? I need if for proof.