Social Security Announces 2018 COLA Changes

The Social Security Administration (SSA) announced that monthly Social Security benefits will increase by 2% beginning January 2018.  The 2% cost-of-living adjustment (COLA) is the largest increase since 2012.  The COLA is based on a broad measure of consumer prices generated by the Bureau of Labor Statistics.

 The SSA also announced changes to other limits.

  • The maximum amount of earnings subject to the Social Security tax for all workers will increase to $128,700. (There is no earnings limit for paying Medicare tax.)
  • The earnings limit for workers who are younger than full retirement age (66 years-old for those born from 1943-1954) increases to $17,040.  SSA deducts $1 from the benefit for each $2 earned over $17,040.
  • The earnings limit for people turning 66 in 2018 increases to $45,360. SSA deducts $1 from benefits for each $3 earned over $45,360 until the month a worker turns 66. After you reach full retirement age, there is no earnings limit.

For more information, please review the SSA Fact Sheet on 2018 Social Security Changes. If you have any questions, please contact the JRB at 888-JRB-FREE (572-3733) or staff@jrbcj.org.