Social Security and Veterans Benefits To Increase in 2018By Kenton Koszdin Law Office on November 10, 2017 | In Social Security Disability
Social Security Disability (SSDI) and Retirement benefit recipients will get a 2% increase in benefits in 2018. This increase is the largest since 2012 and, after a zero increase in 2016 and a modest increase of 0.3% last year, millions of beneficiaries will be pleased.
Each October, the Social Security Administration announces annual changes including benefit cost of living adjustments, if any. Here is a quick look at some of the most significant increases:
- 2% cost of living increase for Social Security beneficiaries. This is the best increase in 6 years, fueled in part by the recent hurricanes Harvey and Irma that pushed gas prices higher. This COLA is calculated using the average inflation reading from the Consumer Price Index for Urban Wage Earners and Clerical Workers, published by the Bureau of Labor Statistics. However, many recipients will see little or no raise as Medicare Part B premium increases may eat up a lot of the increase.
- Maximum monthly payout. If you will be eligible for the maximum monthly benefit at full retirement age, that amount will jump from $2,687 to $2,788.
- Earnings limit for payroll taxes. The FICA tax rate, which includes Social Security and Medicare taxes, will remain the same at 7.65% (15.3% for those who are self-employed). However the annual limit on which Social Security taxes are paid, or maximum taxable earnings cap, is climbing by $1,500 to $128,700.
- Full retirement age. The age at which unreduced benefits are available is increasing in 2018 from 66 years and 2 months to 66 years and 4 months.
- Earnings threshold for disability benefit recipients. Individuals with disabilities can earn up to $1,180 per month in 2018 without impacting their SSDI benefits. Beneficiaries who are blind may earn up to $1,970 a month.
- Earnings limit for retirement beneficiaries who work. If you are working while collecting Social Security Retirement benefits and not yet at your full retirement age, in 2018 you can earn $17,040 annually before your Social Security benefit is reduced – an increase over the 2017 amount of $10 per month.
Because disability benefits from the Department of Veterans Affairs uses the same COLA determination, those payments will also increase by 2% in 2018.
Supplementary Security Income Changes for 2018
2018 Supplementary Security Income (SSI) changes for next year include a 2% COLA, increasing the SSI monthly payment for individuals to $750 and to $1,125 for a couple.
The resource limits used in determining eligibility for SSI remain unchanged at $2,000 for an individual and $3,000 for a couple.
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If you or a loved one has been denied Worker’s Compensation or Social Security Disability (SSDI) benefits, it’s important to get an attorney experienced in these types of cases involved immediately. Call 800.438.7734 for your initial free consultation, either in our office or in the comfort of your own home. The Kenton Koszdin Law Office, Social Security attorney in Van Nuys, can help you navigate the application process for the best possible outcome for you and your family.