Wiregrass Seniors Magazine December 2017 DECEMBER ISSUE | Page 16

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Social Security Tips
With the New Year
Comes New Changes
Monthly Social Security and Supplemental
Security Income (SSI) benefits will see a
slight increase in 2018.
When the SSA 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.
Some other adjustments that take effect in January of each year are based on the in-
crease in average wages. Based on that increase, the maximum amount of earnings sub-
ject to the Social Security tax (taxable maximum) will increase to $128,700 from $127,200.
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. Of the
estimated 174 million workers who will pay Social Security taxes in 2018, about 13 million
will pay more because of the increase in the taxable maximum.
Thresholds for benefits will change slightly next year including the Substantial Gainful Activ-
ity (SGA), SSI Federal Payment Standard, and SSI Student Exclusion.
Information about Medicare changes for 2018 are available at www.Medicare.gov. For
some beneficiaries, their Social Security increase may be partially or completely offset by
increases in Medicare premiums.
The Social Security Act provides for how the Cost of Living Adjustment is calculated. To
read more, please visit www.socialsecurity.gov/cola.