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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Richard
Better than a poke in the eye but not even half of the increase in my health insurance cost. Then there will be a raise in Medicare benefit cost too I suppose. And of course all the other costs included in the CPI or not. Sad.
Larry J.
2 per cent? Wow! Or maybe LOL.
ST S.
The Medicare premium will still eat up all or most of the increase.
Ray F.
Information about Medicare changes for 2018, when announced, will be available at http://www.medicare.gov.
Gennady
hard to live payment 318 dollar MS do for me very bad I no working I use whell chair hard to walking bad balanse
Ralph C.
I’ll be getting an increase of $31.92, so it’s not that bad, but also it’s not that good either.
Linda B.
Please. Do Not Take. It Back. In. Raising Our RENT SO WE CAÑ. ATT. LEAST BY. FOOD. AND. MEDICENE.
Marci
Stop the rediculous waste, of over the top paper mailings and give OT so we are not so stressed and overworked. My gosh
Lonye D.
I have verified an update with DHHS and a Associate Occupational Organization. By consent only Details are available.
Thank you.
Peggy A.
How do I find out my benefits now that I am 70?
Joy
The $17,040 allowed would cover more of my retirement pension from company I worked and retired from after 31 yrs b4 age 62? This is my first year for SS retirement and I want to know if the 17,040 will lower any tax I will have to pay on my SS retirement pension. Just curious as the taxable amount of SS is confusing to me. TY
Ray F.
Just to clarify Joy, the earnings limit for individuals -younger than “full retirement age”- who are continuing to work while receiving Social Security retirement benefits will increase to $17,040 in 2018. (For 2017 that limit is $16,920). In regards to your tax question; some people may 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!