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Cost-of-Living Adjustments
COLA Home This is an archival or historical document that may not reflect current policies or procedures.
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2008 SOCIAL SECURITY CHANGES

(October 2007)
Cost-of-Living Adjustment (COLA):
Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2006 through the third quarter of 2007, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 2.3 percent COLA for 2008. Other important 2008 Social Security information is as follows:
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
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.
$12,960/yr.
($1,080/mo.)
$13,560/yr.
($1,130/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.
$34,440/yr.
($2,870/mo.)
$36,120/yr.
($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.
Blind
$1,500/mo.
$1,570/mo.
Trial Work Period (TWP)
$  640/mo.
$  670/mo.

Maximum Social Security Benefit:
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: 2007 2008
Monthly Limit
$1,510
$1,550
Annual Limit
$6,100
$6,240

Estimated Average Monthly Social Security Benefits Payable in January 2008: Before
2.3% COLA
After
2.3% COLA
All Retired Workers
$1,055
$1,079
Aged Couple, Both Receiving Benefits
$1,722
$1,761
Widowed Mother and Two Children
$2,192
$2,243
Aged Widow(er) Alone
$1,017
$1,041
Disabled Worker, Spouse and One or More Children
$1,652
$1,690
All Disabled Workers
$  981
$1,004
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