Skip to main content

Social Security Announces 2% COLA Benefit Increase for 2018

  • Synopsis: Published: 2017-10-13 (Revised/Updated 2017-10-15) - U.S. Social Security Administration announces monthly Social Security and Supplemental Security Income (SSI) benefits will increase 2 percent in 2018 - The United States Social Security Administration (socialsecurity.gov/cola).

Main Document

Quote: "The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics."

How much COLA for 2018? The U.S. Cost of Living Adjustment (COLA) will be 2% in 2018.

Monthly Social Security and Supplemental Security Income (SSI) benefits for more than 66 million Americans will increase 2 percent in 2018, the Social Security Administration announced. The 2 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 61 million Social Security beneficiaries in January 2018. Increased payments to more than 8 million SSI beneficiaries will begin on December 29, 2017.

(Note: some people receive both Social Security and SSI benefits)

The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics. Some other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $128,700 from $127,200. Of the estimated 175 million workers who will pay Social Security taxes in 2018, about 12 million will pay more because of the increase in the taxable maximum.

2018 Social Security Changes Cost-of-living Adjustment (COLA)

Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2016 through the third quarter of 2017, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 2.0 percent COLA for 2018. Other important 2018 Social Security information is as follows:

 

Tax Rate20172018
Employee7.65%7.65%
Self-Employed15.30%15.30%
NOTE: The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings. Also, as of January 2013, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes. The tax rates shown above do not include the 0.9 percent.

 

COLA 2018 Fig 1.
About This Image: COLA 2018 Fig 1.

 

COLA 2018 Fig 2.
About This Image: COLA 2018 Fig 2.

 

Past COLA Rates

July 1975 -- 8.0%
July 1976 - 6.4%
July 1977 - 5.9%
July 1978 - 6.5%
July 1979 - 9.9%
July 1980 - 14.3%
July 1981 - 11.2%
July 1982 - 7.4%
January 1984 - 3.5%
January 1985 - 3.5%
January 1986 - 3.1%
January 1987 - 1.3%
January 1988 - 4.2%
January 1989 - 4.0%
January 1990 - 4.7%
January 1991 - 5.4%
January 1992 - 3.7%
January 1993 - 3.0%
January 1994 - 2.6%
January 1995 - 2.8%
January 1996 - 2.6%
January 1997 - 2.9%

January 1998 - 2.1%
January 1999 - 1.3%
January 2000 - 2.5%(1)
January 2001 - 3.5%
January 2002 -- 2.6%
January 2003 -- 1.4%
January 2004 -- 2.1%
January 2005 -- 2.7%
January 2006 -- 4.1%
January 2007 -- 3.3%
January 2008 -- 2.3%
January 2009 -- 5.8%
January 2010 -- 0.0%
January 2011 -- 0.0%
January 2012 -- 3.6%
January 2013 -- 1.7%
January 2014 -- 1.5%
January 2015 -- 1.7%
January 2016 -- 0.0%
January 2017 -- 0.3%
January 2018 -- 2.0%

(1) The COLA for December 1999 was originally determined as 2.4 percent based on CPIs published by the Bureau of Labor Statistics. Pursuant to Public Law 106-554, however, this COLA is effectively now 2.5 percent.

 

Information about Medicare changes for 2018, when announced, will be available at www.medicare.gov

The Social Security Act provides for how the COLA is calculated. To read more, please visit www.socialsecurity.gov/cola

Related Information:

  1. Social Security Task Force Statement on H.R. 2792 - Proposed cut would bar payment of SSI benefits to people with an outstanding arrest warrant for an alleged felony or for an alleged violation of probation or parole - CCD Social Security Task Force
  2. Social Security COLA Forecast For 2018 is 1.8 Percent - Estimate released by TSCL states Social Security recipients will receive an annual cost of living adjustment (COLA) of about 1.8% in 2018 - The Senior Citizens League


Information from our U.S. Social Security: Disability Information section - (Full List).

Submit event details, disability news, and assistive technology products for publishing on Disabled World


Loan Information for low income singles, families, seniors and disabled. Includes home, vehicle and personal loans.


Famous People with Disabilities - Well known people with disabilities and conditions who contributed to society.


List of awareness ribbon colors and their meaning. Also see our calendar of awareness dates.


Blood Pressure Chart - What should your blood pressure be. Also see information on blood group types and compatibility.



  1. Britain's Unproductive Disabled: A Continuing Moral Panic?
  2. Social Networking Helps Keep People Healthy
  3. Majority in Favor of Spinal Muscular Atrophy (SMA) Screening
  4. When the Spinal Cord Takes Charge of Information Related to Movement




Citation



Errors: Disabled World is an independent website, your assistance in reporting outdated or inaccurate information is appreciated. If you find an error please let us know.

Disclaimer: Content on Disabled World is not intended to be a substitute for professional medical advice, diagnosis, or treatment. Always seek the advice of a physician or other qualified health provider with any questions you may have regarding a medical condition. See our Terms of Service for more information.