Social Security Announces 2.0 Percent Benefit Increase for 2018

Washington, D.C. - October 17, 2017 (The Ponder News) -- Monthly Social Security and Supplemental Security Income (SSI) benefits for more than 66 million Americans will increase 2.0 percent in 2018, the Social Security Administration has announced.

The 2.0 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 61 million Social Security beneficiaries in January 2018. Increased payments to more than 8 million SSI beneficiaries will begin on December 29, 2017. (Note: some people receive both Social Security and SSI benefits) The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.

Some other adjustments 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 $128,700 from $127,200. Of the estimated 175 million workers who will pay Social Security taxes in 2018, about 12 million will pay more because of the increase in the taxable maximum.

Seniors Task Force Chairs Doris O. Matsui (D-CA, 6th) and Jan Schakowsky (D-IL), along with Vice Chairs Reps. Lucille Roybal-Allard (D-CA), Joyce Beatty (D-OH), Michelle Lujan Grisham (D-NM), Debbie Dingell (D-MI), and Charlie Crist (D-FL), released the following statement on the announcement of a 2 percent Social Security COLA increase for beneficiaries:

“Today’s announcement of a 2 percent increase in the Social Security cost-of-living adjustment is welcome news after two years of virtually no inflationary adjustment – but it is not enough to help millions of seniors make ends meet.

“Two-thirds of retirees rely on Social Security for the majority of their income. For nearly 1 in 3 retirees, it represents 90% or more of their income. A two percent COLA – an average of $27 a month – isn’t adequate to help them deal with the rising costs of health care, food and transportation. That’s why the House Democratic Caucus Seniors Task Force is committed not just to protecting and expanding Social Security benefits but to lowering the cost of prescription drugs and other basic necessities.

“Retirees deserve a better deal – and Democrats will fight to make sure that they get it.”