Susan E. Thomas CPA
Newsletter
Social Security Figures At-a-Glance


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.

Source: Social Security Administration



Prepared by Broadridge Investor Communication Solutions, Inc, Copyright 2011