2018 Social Security Benefit Increases and Limits

2018 benefit increases and limits

Each year the Social Security Administration (SSA.gov) publishes Old Age, Survivors, Disability Insurance Benefits and Supplemental Security Income program rates and limits. Below is a verbatim review of the 2018 information provided by the SSA.

The important news for Social Security retirement recipients is the 2.0% Cost of Living Adjustment (COLA). The 2018 COLA increase (effective January 2018) is the highest pay hike in Social Security benefits in years.

Tax Rates
-Social Security Tax Rate for Employer and Employee: 6.20%
-Medicare Tax Rate for Employer and Employee: 1.45%
-Total Social Security and Medicare Tax Rate: 15.3%

Taxable Earnings
-Maximum Taxable Earnings for Social Security: $128,700
-Maximum Taxable Earnings for Medicare Hospital Insurance: No limit

Quarter of Coverage
-Earnings Required for One Quarter of Coverage Work Credit: $1,320
-Earnings Required for Maximum of Four Credits a Year: $5,280

Exempt Earnings
-Exempt Earnings Amount Under Full Retirement Age: $17,040
-Exempt Earnings Amount Before Reaching Full Retirement Age: $45,360
-Exempt Earnings Reaching Full Retirement Age: No Limit

Maximum Monthly Benefit
-Maximum Monthly Social Security Benefit at Full Retirement Age: $2,788

Retirement Age
-Full Retirement Age: 66
-Early Retirement Age: 62

Cost of Living
-Cost-of-Living Adjustment: 2.0%

Disability Substantial Gainful Activity
-Substantial Gainful Activity for Nonblind Disabled: $1,180

SSI Monthly Standard Payments
-SSI Monthly Federal Payment Standard for Individual: $750.00
-SSI Monthly Federal Payment Standard for Couple: $1,125

SSI Resource Limits
-Resource Limit for Individual: $2,000
-Resource Limit for Couple: $3,000

For details and to see this information in pdf format see: https://www.ssa.gov/policy/docs/quickfacts/prog_highlights/RatesLimits2018.pdf

About ksindell

Kathleen Sindell, Ph.D. is the author of numerous academic, popular, and professional finance articles, Web sites, proposals, and books. This includes the bestselling reference book, "Investing Online for Dummies, Eds 1-5" (listed for two consecutive years on the Wall Street Journal's Bestselling Business Book List). Her most recent book "Social Security: Maximize your Benefits" has been listed in Amazon's Top 100 Bestselling Retirement Planning Books. It is important to note that "Social Security: Maximize Your Benefits, 2nd Edition" was just released. Sindell has an in-depth understanding of the financial services industry and has held Series 7, 63, and 65 licenses. Dr. Sindell is regularly tapped as a financial services expert on ABC World News, The Nightly Business Report, and at popular online and print outlets. Kathleen Sindell, Ph.D. is a member of the Board of Directors for the Financial Planning Association, National Capital Area (FPA NCA), is on the Editorial Advisory Panel of the Journal of Financial Planning, and is Co-Chair of the Metro Washington Financial Planning Day. Sindell is a Course Chair II, CFP Program Academic Officer, and adjunct full-professor at the University of Maryland, UMUC, School of Undergraduate Studies. Contact Information: ksindell@kathleensindell.com or 703-299-1700
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