The Social Security Administration just announced its annual Cost-of-Living Adjustment (COLA) for 2018.
United Asset Strategies believe this is important to share since 66 million Americans will see an increase in their monthly Social Security and Supplemental Security Income next year.
The purpose of the COLA is to ensure that the purchasing power of Social Security will not be eroded by inflation.
This is very welcome news since Social Security did not have an increase in 2016 and only a 0.3% increase in 2017.
Key provisions are listed below:
- Social Security Cost-of-Living Adjustment (COLA) will increase to 2%.
- Maximum amount of earnings subject to Social Security payroll tax will increase to $128,700.
- Earnings limit for workers younger than “full” retirement age will increase to $17,040. Social Security Administration deducts $1 from benefits for each $2 earned over $17,040.
- Earnings limit for workers turning “full” retirement age in 2018 will increase to $45,360. Social Security Administration deducts $1 from benefits for each $3 earned over $45,360.
For answers to your Social Security questions and to learn more about the Social Security Planning United Asset Strategies offers,