Social Security Benefits to Increase

Social Security Benefits to Increase

Social Security AdministrationDue to the 2018 Cost of Living Adjustment (COLA), Social Security benefit recipients will see a 2% increase in their Social Security benefits in 2018.

Other changes for 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 who are younger than “full” retirement age (age 66 for people born in 1943 through 1954) will increase to $17,040. (the Social Security Administration¬†deducts $1 from benefits for each $2 earned over $17,040.)

The earnings limit for people turning 66 in 2018 will increase to $45,360. ($1 are deducted from benefits for each $3 earned over $45,360 until the month the worker turns age 66.)

There is no limit on earnings for workers who are “full” retirement age or older for the entire year.

To read more on the benefit increase, see this Social Security Administration Press Release.

To read more on the 2018 COLA, see this article on the Social Security Administration website.

 

Colleen Minnich

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