Social Security Announces $24 Monthly Benefit Increase for Average Senior Citizen in 2008

History of Increases
Month	Year	% Ch.
January	2008	2.30%
January	2007	3.30%
January	2006	4.10%
January	2005	2.70%
January	2004	2.10%
January	2003	1.40%
January	2002	2.60%
January	2001	3.50%
January	2000	2.50%
January	1999	1.30%
January	1998	2.10%
January	1997	2.90%
January	1996	2.60%
January	1995	2.80%
January	1994	2.60%
January	1993	3.00%
January	1992	3.70%
January	1991	5.40%
January	1990	4.70%
January	1989	4.00%
January	1988	4.20%
January	1987	1.30%
January	1986	3.10%
January	1985	3.50%
January	1984	3.50%
July	1982	7.40%
July	1981	11.20%
July	1980	14.30%
July	1979	9.90%
July	1978	6.50%
July	1977	5.90%
July	1976	6.40%
July	1975	8.00%
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 shown for January 2000 is effectively now 2.5 percent.

Oct. 17, 2007 – The cost of living adjustment for Social Security – commonly called “COLA” – will go up only 2.3 percent in 2008, the smallest increase since 1904, which adds just $24 to the average retired senior citizen’s wallet. It is, however, even less than that after seniors pay for the increases in Medicare fees and deductibles for 2008. The COLA announcement was made today by the Social Security Administration.

This increase is for the monthly Social Security and Supplemental Security Income benefits for more than 54 million Americans.

Social Security and Supplemental Security Income benefits increase automatically each year based on the rise in the Bureau of Labor Statistics' Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), from the third quarter of the prior year to the corresponding period of the current year. This year's increase in the CPI-W was 2.3 percent.

Already, however, many are complaining that the rate adjustment does not take into consideration the rapid increases in oil and other prices now taking place.

The 2.3 percent Cost-of-Living Adjustment (COLA) will begin with benefits that nearly 50 million Social Security beneficiaries receive in January 2008. Increased payments to more than 7 million Supplemental Security Income beneficiaries will begin on December 31.

Some other changes 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 $102,000 from $97,500.

Of the estimated 164 million workers who will pay Social Security taxes in 2008, nearly 12 million will pay higher taxes as a result of the increase in the taxable maximum.

The monthly charge for Medicare’s Part B in 2008 will be $96.40, a 3.1 percent increase over this year. It was heralded as the smallest rate increase in six years, but how it got there is partially due to an accounting error that was corrected by the Centers for Medicare & Medicaid Services (CMS). The agency said the premium would have increased to about $99 per month without the accounting error correction.

>> Click here to Medicare Part B Monthly Premium Goes Up 3.1% to $96.40, in 2008 - Oct. 2, 2007

Estimated Average Monthly Social Security Benefits Payable in January 2008:	Before 2.3% COLA	After 2.3% COLA	2008 Increase
All Retired Workers	$1,055	$1,079	$24
Aged Couple, Both Receiving Benefits	$1,722	$1,761	$39
Widowed Mother and Two Children	$2,192	$2,243	$51
Aged Widow(er) Alone	$1,017	$1,041	$24
Disabled Worker, Spouse and One or More Children	$1,652	$1,690	$38
All Disabled Workers	$ 981	$1,004	$23
Note: Cola increases are same for all but changes in averages occur as beneficiary mix changes.

Average Retiree to get $116 more than in 2005

Estimated Average Monthly Social Security Benefits	2008	2007	2006	2005	Diff 05-08	% Ch
Percent COLA increase from previous year	2.3	3.3	4.1	2.7
All Retired Workers	$1,079	$1,055	$1,002	$963	$116	12.0%
Aged Couple, Both Receiving Benefits	$1,761	$1,722	$1,648	$1,583	$178	11.2%
Widowed Mother and Two Children	$2,243	$2,192	$2,074	$1,992	$251	12.6%
Aged Widow(er) Alone	$1,041	$1,017	$967	$929	$112	12.1%
Disabled Worker, Spouse and One or More Children	$1,690	$1,652	$1,571	$1,509	$181	12.0%
All Disabled Workers	$1,004	$981	$939	$902	$102	11.3%
Note: Cola increases are same for all but changes in averages occur as beneficiary mix changes.

Other Changes in Social Security for 2008
Tax Rate	2007	2008
Employee	7.65%	7.65%
Self-Employed	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.

Maximum Taxable Earnings:	2007	2008
Social Security (OASDI only)	$97,500	$102,000
Medicare (HI only)	No Limit

Quarter of Coverage:	2007	2008
	$1,000	$1,050

Retirement Earnings Test Exempt Amounts:	2007	2008
Under full retirement age	$12,960/yr.	$13,560/yr.
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.	($1,080/mo.)	($1,130/mo.)
The year an individual reaches full retirement age	$34,440/yr.	$36,120/yr.
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.	($2,870/mo.)	($3,010/mo.)
There is no limit on earnings beginning the month an individual attains full retirement age.

Social Security Disability Thresholds:		2007	2008
Substantial Gainful Activity (SGA)	Non-Blind	$ 900/mo.	$ 940/mo.
Substantial Gainful Activity (SGA)	Blind	$1,500/mo.	$1,570/mo.
Trial Work Period (TWP)		$ 640/mo.	$ 670/mo.

Maximum Social Security Benefit:	2007	2008
Worker Retiring at Full Retirement Age	2007	2008
	$2,116/mo.	$2,185/mo.

SSI Federal Payment Standard:	2007	2008
Individual	$ 623/mo.	$ 637/mo.
Couple	$ 934/mo.	$ 956/mo.

SSI Resources Limits:	2007	2008
Individual	$2,000	$2,000
Couple	$3,000	$3,000

SSI Student Exclusion Limits:	2007	2008
Monthly Limit	$1,510	$1,550
Annual Limit	$6,100	$6,240

Social Security Basic Facts

August 30 , 2007

● In 2007, almost 50 million Americans will receive over $585 billion in Social Security benefits.

June 2007 Beneficiary Data

Retired workers	31 million	$33 billion	$1,050 average monthly benefit
dependents	3 million	$ 1.5 billion
Disabled workers	6.9 million	$ 6.7 billion	$979 average monthly benefit
dependents	1.8 million	$ .5 billion
Survivors	6.5 million	$ 5.9 billion	$1012 average monthly benefit

● Social Security is the major source of income for most of the elderly.

> Nine out of ten individuals age 65 and older receive Social Security benefits.

> Social Security benefits represent 41% of the income of the elderly.

> Among elderly Social Security beneficiaries, 54% of married couples and 74% of unmarried persons receive 50% or more of their income from Social Security.

> Among elderly Social Security beneficiaries, 21% of married couples and about 43% of unmarried persons rely on Social Security for 91% or more of their income.