 The 2.0 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.
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column] |
 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.
Social
Security Cola figures fact sheet Pdf
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.
[Jack Myers
Public Affairs Specialist
Social Security Administration] |
