October 14, 2018 — If you receive Social Security or Supplemental Security Income (SSI) benefits, the biggest increase in years is about to come your way. More than 67 million Americans will see an increase of 2.8 percent in 2019. The COLA was 2% in 2018 and .3% in 2016. The 2.8 percent cost-of-living adjustment (COLA) will begin with benefits payable in January 2019 (which means you will see the increase in your Feb deposit). If your monthly payment is currently $2500, that means a $70/month increase.
Earnings limits also increased
The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $132,900.
For workers receiving Social Security benefits the earnings limit for workers who are younger than “full” retirement age (age 66 for people born in 1943 through 1954) will increase to $17,640. ( $1 is deducted from benefits for each $2 earned over $17,640.)
The earnings limit for people turning 66 in 2019 will increase to $46,920. ( $1 is deducted from benefits for each $3 earned over $46,920 until the month the worker turns age 66.)
There is no limit on earnings for workers who are “full” retirement age or older for the entire year.
Information about Medicare Part B premiums changes for 2019 has not yet been released. These premiums are deducted from payments made to Social Security beneficiaries receiving Medicare.
Automatic Cost-Of-Living Adjustments (COLA)
The purpose of the COLA is to ensure that the purchasing power of Social Security and Supplemental Security Income (SSI) benefits is not eroded by inflation. It is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the last year a COLA was determined to the third quarter of the current year. If there is no increase, there can be no COLA. You will need your SSC if you lost it you can apply for a social security card now. The CPI-W is determined by the Bureau of Labor Statistics in the Department of Labor. By law, it is the official measure used by the Social Security Administration to calculate COLAs.
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