U.S. Social Security 0.3% Benefit Increase for 2017
Author: United States Social Security Administration - Contact: ssa.gov
Published: 2016/10/18
Topic: U.S. Social Security - Publications List
Page Content: Synopsis - Introduction - Main
Synopsis: Monthly Social Security and Supplemental Security Income (SSI) benefits for more than 65 million Americans will increase 0.3 percent in 2017.
Introduction
The 0.3 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 60 million Social Security beneficiaries in January 2017. Increased payments to more than 8 million SSI beneficiaries will begin on December 30, 2016. 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.
Main Item
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 $127,200 from $118,500. Of the estimated 173 million workers who will pay Social Security taxes in 2017, about 12 million will pay more because of the increase in the taxable maximum.
Tax Rate: | 2016 | 2017 | |
Employee | 7.65% | 7.65% | |
15.30% | 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.
Maximum Taxable Earnings:
Social Security (OASDI only) | $118,500 | $127,200 | |
Medicare (HI only) | N o | L i m i t | |
Quarter of Coverage: | |||
$1,260 | $1,300 |
Retirement Earnings Test Exempt Amounts:
Under full retirement age | $15,720/yr. | $16,920/yr. |
($1,310/mo.) | ($1,410/mo.) |
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.
The year an individual reaches full retirement age | $41,880/yr. | $44,880/yr. |
($3,490/mo.) | ($3,740/mo.) |
NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit. There is no limit on earnings beginning the month an individual attains full retirement age.
Social Security Disability Thresholds:
Substantial Gainful Activity (SGA) | ||||
$ | 1,130/mo. | $ | 1,170/mo. | |
Blind | $ | 1,820/mo. | $ | 1,950/mo. |
Trial Work Period (TWP) | $ | 810/mo. | $ | 840/mo. |
Maximum Social Security Benefit: Worker Retiring at Full Retirement Age:
$2,639/mo. $2,687/mo.
SSI Federal Payment Standard:
Individual | $ | 733/mo. | $ | 735/mo. |
Couple | $ | 1,100/mo. | $ | 1,103/mo. |
SSI Resources Limits:
Individual | $2,000 | $2,000 |
Couple | $3,000 | $3,000 |
SSI Student Exclusion:
Monthly limit | $1,780 | $1,790 |
Annual limit | $7,180 | $7,200 |
Estimated Average Monthly Social Security Benefits Payable in January 2017:
Before | After | |
0.3% COLA | 0.3% COLA | |
All Retired Workers | $1,355 | $1,360 |
Aged Couple, Both Receiving Benefits | $2,254 | $2,260 |
Widowed Mother and Two Children | $2,686 | $2,695 |
Aged Widow(er) Alone | $1,296 | $1,300 |
Disabled Worker, Spouse and One or More Children | $1,990 | $1,996 |
All Disabled Workers | $1,167 | $1,171 |
- Information about Medicare changes for 2017, when announced, will be available at www.Medicare.gov
- For some beneficiaries, their Social Security increase may be partially or completely offset by increases in Medicare premiums.
- The Social Security Act provides for how the COLA is calculated. Read more, visit www.socialsecurity.gov/cola