|
E-mail this page to a friend!
Social Security News
Social Security Gives Senior Citizens 3.3 Percent
Increase for 2007
 October 19, 2006 - Monthly Social Security and
Supplemental Security Income benefits for more than 53 million Americans
will increase 3.3 percent in 2007, the Social Security Administration
announced yesterday. The monthly benefit for the average senior citizen
couple goes from $1,658 per month to $1,713.
|
Estimated
Average Monthly Social Security Benefits Payable in
January 2007: |
Before
3.3% COLA |
After
3.3% COLA |
|
All Retired Workers |
$1,011 |
$1,044 |
|
Aged Couple, Both Receiving
Benefits |
$1,658 |
$1,713 |
|
Widowed Mother and Two Children |
$2,098 |
$2,167 |
|
Aged Widow(er) Alone |
$ 976 |
$1,008 |
|
Disabled Worker, Spouse and
One or More Children |
$1,593 |
$1,646 |
|
All Disabled Workers |
$ 947 |
$ 979 |
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 3.3 percent.
The 3.3 percent Cost-of-Living Adjustment (COLA)
will begin with benefits that nearly 49 million Social Security
beneficiaries receive in January 2007. Increased payments to more than
7 million Supplemental Security Income beneficiaries will begin on
December 29.
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 $97,500 from $94,200. Of the
estimated 163 million workers who will pay Social Security taxes in
2007, about 11 million will pay higher taxes as a result of the increase
in the taxable maximum in 2007.
Cost-of-Living Adjustment (COLA):
Based on the increase in the Consumer Price Index
(CPI-W) from the third quarter of 2005 through the third quarter of
2006, Social Security and Supplemental Security Income (SSI)
beneficiaries will receive a 3.3 percent COLA for 2007. Other important
2007 Social Security information is as follows:
|
Tax Rate |
2006 |
2007 |
|
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
Earnings Taxable: |
2006 |
2007 |
|
Social Security (OASDI only) |
$94,200 |
$97,500 |
|
Medicare (HI only) |
No Limit |
|
Retirement Earnings Test Exempt Amounts: |
2006 |
2007 |
|
Under full retirement age
NOTE: One dollar in benefits will be withheld for every $2 in
earnings above the limit. |
$12,480/yr.
($1,040/mo.) |
$12,960/yr.
($1,080/mo.) |
|
The year an individual reaches
full retirement age
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. |
$33,240/yr.
($2,770/mo.) |
$34,440/yr.
($2,870/mo.) |
|
There is no limit on earnings
beginning the month an individual attains full retirement age
(65 and 8 months for retirees born in 1941; 65 and 10 months for
those born in 1942). |
|
Social Security Disability Thresholds: |
2006 |
2007 |
|
Substantial Gainful Activity (SGA) |
Non-Blind
|
$ 860/mo. |
$ 900/mo. |
|
Blind
|
$1,450/mo. |
$1,500/mo. |
|
Trial Work Period (TWP) |
$ 620/mo. |
$ 640/mo. |
|
Maximum
Social Security Benefit:
Worker Retiring at
Full Retirement Age in |
2006 |
2007 |
|
NOTE: For retirees born in 1941, full retirement
age is 65 and 8 months; for those born in 1942, it is 65 and 10
months. Full retirement age will gradually increase to age 67
for those born in 1960 and later. |
$2,053/mo.
(Age 65 and 8 months) |
$2,116/mo.
(Age 65 and 10 months) |
|
SSI
Resources Limits: |
2006 |
2007 |
|
Individual |
$2,000 |
$2,000 |
|
Couple |
$3,000
|
$3,000 |
Click to More Senior News on the
Front Page
Copyright: SeniorJournal.com |
