|
|
2006 | 2007 |
| Social Security Cost-of-living adjustment (COLA) |
|
|
For Social Security and Supplemental Security Income (SSI) beneficiaries |
4.10% | 3.30% |
| Tax rate |
|
|
FICA tax--Employee |
7.65% | 7.65% |
Social Security (OASDI) portion of tax |
6.20% | 6.20% |
Medicare (HI) portion of tax |
1.45% | 1.45% |
Self-Employed |
15.30% | 15.30% |
Social Security (OASDI) portion of tax |
12.40% | 12.40% |
Medicare (HI) portion of tax |
2.90% | 2.90% |
| Maximum taxable earnings |
|
|
Social Security (OASDI only) |
$94,200 | $97,500 |
Medicare (HI only) |
No limit | No limit |
| Quarter of coverage |
|
|
Earnings required |
$970 | $1,000 |
| Full retirement age1 | 65 years, 8 months | 65 years, 10 months |
| Retirement earnings test--exempt amounts |
|
|
Under full retirement age |
|
|
Benefits reduced by $1 for each $2 earned above: |
|
|
Yearly figure |
$12,480 | $12,960 |
Monthly figure |
$1,040 | $1,080 |
Year individual reaches full retirement age |
|
|
Benefits reduced by $1 for each $3 earned above (applies only to earnings for months prior to attaining full retirement age): |
|
|
Yearly figure |
$33,240 | $34,440 |
Monthly figure |
$2,770 | $2,870 |
Beginning the month individual attains full retirement age |
No limit on earnings | No limit on earnings |
| Social Security disability thresholds |
|
|
Substantial gainful activity (SGA): for the sighted (monthly figure) |
$860 | $900 |
Substantial gainful activity: for the blind (monthly figure) |
$1,450 | $1,500 |
Trial work period (TWP) (monthly figure) |
$620 | $640 |
| SSI federal payment standard |
|
|
Individual (monthly figure) |
$603 | $623 |
Couple (monthly figure) |
$904 | $934 |
| SSI resource limits |
|
|
Individual |
$2,000 | $2,000 |
Couple |
$3,000 | $3,000 |
| SSI student exclusion limits |
|
|
Monthly limit |
$1,460 | $1,510 |
Annual limit |
$5,910 | $6,100 |
| Maximum Social Security benefit |
|
|
Worker retiring at full retirement age (monthly figure) |
$2,053 | $2,116 |
| Estimated average monthly Social Security benefits payable to: | After 4.1% COLA | After 3.3% COLA |
All retired workers |
$1,002 | $1,044 |
Aged couple, both receiving benefits |
$1,648 | $1,713 |
Widowed mother and two children |
$2,074 | $2,167 |
Aged widow(er) alone |
$967 | $1,008 |
Disabled worker, spouse, and one or more children |
$1,571 | $1,646 |
All disabled workers |
$939 | $979 |
| Formula for Monthly Primary Insurance Amount (PIA) (90% of first X of AIME + 32% of the AIME over X and through Y + 15% of AIME over Y) | X=$656 Y=$3,955 | X=$680 Y=$4,100 |
1Full retirement age is 65 for those born in 1937 or earlier, 65 and 2 months for those born in 1938, 65 and 4 months for those born in 1939, 65 and 6 months for those born in 1940, 65 and 8 months for those born in 1941, and 65 and 10 months for those born in 1942.
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