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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William F.
Have not received 2018 benefits notice as of today.
R.F.
Hi William, the cost-of-living adjustment (COLA) notices for 2018 are mailed during the month of December. Thanks!
Michael P.
Have the 2018 Benefit award letters mailed? If not when will they be mailed?
R.F.
The cost-of-living adjustment (COLA) notices for 2018 are mailed during the month of December. Thanks!
anthony r.
how can i find out how much the social security benefits will be as of begining in the new year? my wife received correspondence regarding the increase but as of dec. 15th i have not.
R.F.
Hi Anthony, the cost-of-living adjustment (COLA) notices for 2018 are mailed during the month of December. If you need proof you get Social Security benefits, Supplemental Security (SSI) Income or Medicare, you can request a benefit verification letter online by using your my Social Security account. Thanks!
Diane
I don’t believe there should be a maximum earnings limit on Social Security deductions. if they would take off that limitation and everyone has to contribute to Social Security regardless if they earn a dollar or $5 million we will be able to reduce the amount of Social Security taken out of our wages for Social Security and there would be more than enough money to sustain Social Security forever.
UVALDO E.
I did not receive a form “Your New Benefit Amount for the year 2018. I would like to know why not?
Other folks I know got mail but I didn’t, mail or email, why?
R.F.
Hello Uvaldo. The cost-of-living adjustment (COLA) notices for 2018 are mailed during the month of December. If you need proof you get Social Security benefits, Supplemental Security (SSI) Income or Medicare, you can request a benefit verification letter online by using your my Social Security account. Thanks!
UVALDO E.
If the new tax bill is ratified, will all my SS be taxed or will I be able to use the benefits worksheet when doing my 1040 as before?
I eFile but I still do a hard copy draft for myself every year.
thanx.
Verna W.
I did not receive a form “Your New Benefit Amount for the year 2018. I would like to know why not.
R.F.
Thanks for your question, Verna. The cost-of-living adjustment (COLA) notices for 2018 are mailed during the month of December. Remember, if you need proof you get Social Security benefits, Supplemental Security (SSI) Income or Medicare, you can request a benefit verification letter online by using your my Social Security account. Thanks!
oliver c.
You are quibbling about a lousy 2% social security increase while Trump is about to give his wealthy friends and donors 1.5 trillion dollars (yes trillions) in tax cuts that will paid for on the backs of the elderly. The republicans in congress were looking to raid social security and cut medicare benefits for a long time and now they have a president who is willing to help them. AARP is always asking for money to fight this but yet they show no results. Wake up people, let your voices be heard by contacting your senators and representatives.
oliver c.
federal income taxes are paid on social security contributions and then again on retirement benefits received (double taxation). If president trump want to give the elderly a tax cut why not exempt social security benefits from federal income tax.
Elizabeth A.
what will the 2018 cost of living increase be and will will I receive my notice from social security?
R.F.
Hi Elizabeth. Monthly Social Security and Supplemental Security Income (SSI) benefits will increase 2.0 percent in 2018. The cost-of-living adjustment (COLA) notices for 2018 are mailed during the month of December.
If you need proof you get Social Security benefits, Supplemental Security (SSI) Income or Medicare, you can request a benefit verification letter online by using your my Social Security account. Thanks!