Well, the wait is over for the 2018 announcement on the cost of living adjustment (COLA) to Social Security. Less than one hour ago (as I write this) the SSA released the 2018 COLA numbers. I have summarized the key changes below. For all the details you can refer to the 2018 SSA COLA facts sheet here: https://www.ssa.gov/news/press/factsheets/colafacts2018.pdf
2018 COLA Changes
- Social Security recipients will receive a 2.0% COLA for 2018, beginning with their January, 2018 payment. (click here for the list of past COLA percentages)
- The new maximum taxable earnings limit is $128,700, up from $127,200
- Earnings Test exempt amount goes up to $17,040/year from $16,920 in 2017
- Earnings required to earn one quarter or credit of coverage is $1,320, up from $1,300
New Medicare Premium Numbers Not Announced Yet
While this release is good news, be aware that they have not yet released the new Medicare premium numbers for 2018. As I talked about in my post from September 27th, “Many Will Lose the 2018 COLA”, the anticipated increase in Medicare premiums for those previously protected by the hold harmless provision will likely wipe out a substantial part of your 2% SS benefit increase. Once they release any new Medicare premium news we will be sure to update you.
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