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Cost of Living Adjustments
COLA Home This is an archival or historical document and may not reflect current policies or procedures.
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2007 SOCIAL SECURITY CHANGES

(October 2006)
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

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 Federal Payment Standard: 2006 2007
Individual
$ 603/mo.
$ 623/mo.
Couple
$ 904/mo.
$ 934/mo.

SSI Resources Limits: 2006 2007
Individual
$2,000
$2,000
Couple
$3,000
$3,000

SSI Student Exclusion Limits: 2006 2007
Monthly Limit
$1,460
$1,510
Annual Limit
$5,910
$6,100

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
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