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

Quarter of Coverage:

2006

2007

$ 970

$1,000

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