Social Security and SSI Increases 2018

The Social Security Administration (SSA) is gearing up to begin paying more to beneficiaries in the coming months. Starting in January 2018, a 2.0 percent cost-of-living adjustment (COLA) will impact more than 61 million Social Security beneficiaries. Americans who receive Supplemental Security Income (SSI) will see an increase in their payments as well. The SSI benefits increase takes effect on Dec. 29. 2017, affecting more than 8 million people. Some Americans will benefit from both Social Security and SSI increases.

People who rely on Social Security and SSI will see a 2 percent increase as we make the transition into 2018, Disability Scoop reports. This is the most significant benefit increase since 2012 when recipients saw a 3.6 percent jump and the third-biggest increase since 2009.

Why The Sudden Increase in Benefits?

Every time inflation rises in the United States an automatic cost-of-living adjustment is calculated, by law. The Administration ties the annual COLA to the increase in the Consumer Price Index set by the Department of Labor’s Bureau of Labor Statistics. If you’d like to learn more on how the COLA is calculated, please click here. While the increase may not appear to be all that significant, the extra money will add up over time, giving millions of Americans greater financial security. The average retired worker will receive an extra $27 per month, for instance:

• In 2017, the maximum federal SSI payment for individuals was $735; in 2018 that number will rise to $750 per month.
• This year couples received a maximum $1,103 per month, in 2018 that number will go up to $1,125.
• The ceiling on earnings subject to the Social Security tax (taxable maximum) will increase to $128,700 from $127,200.

It’s worth pointing out that Medicare recipients who have their Plan B premiums deducted from their monthly Social Security may not benefit from the increase, Fortune reports. The “hold harmless clause” is a rule that ensures that Part B monthly premiums don’t rise at a faster pace than Social Security’s COLA. Information on changes to Medicare in 2018 resides here.

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SSI Lawyer

If you are applying for or were denied Supplemental Security Income, please contact Attorney Stephanie Merritt Driscoll. At the Driscoll Law Corporation, we can help you navigate the ins-and-outs of Social Security and give you the best chance at receiving the benefits you require.