Cost-of-Living Adjustment (COLA):
| Based on the increase in the Consumer Price Index (CPI-W)
from the third quarter of 2004 through the third quarter of 2005,
Social Security and Supplemental Security Income (SSI) beneficiaries
will receive a 4.1 percent COLA for 2006. Other
important 2006 Social Security information is as follows: |
|
| Tax
Rate |
2005 |
2006 |
| 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: |
2005 |
2006 |
| |
$90,000 |
$94,200 |
| Medicare (HI only) |
No
Limit |
| Retirement
Earnings Test Exempt Amounts: |
2005 |
2006 |
| Under full retirement
age
NOTE: One dollar in benefits will
be withheld for every $2 in earnings above the limit. |
$12,000/yr.
($1,000/mo.) |
$12,480/yr.
($1,000/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. |
$31,800/yr.
($2,650/mo.) |
$33,240/yr.
($2,770/mo.) |
| There is no limit
on earnings beginning the month an individual attains full retirement
age (65 and 6 months for retirees born in 1940; 65 and 8 months
for those born in 1941). |
| Social Security
Disability Thresholds: |
2005 |
2006 |
| Substantial
Gainful Activity (SGA) |
Non-Blind |
$ 830/mo. |
$ 860/mo. |
| Blind |
$1,380/mo. |
$1,450/mo. |
| Trial Work Period
(TWP) |
$ 590/mo. |
$ 620/mo. |
Maximum Social Security Benefit:
Worker Retiring at Full Retirement Age in |
2005
|
2006
|
| NOTE: For retirees born in 1940, full retirement age is 65 and 6 months; for those born in 1941, it is 65 and 8 months. Full retirement age will gradually increase to age 67 for those born in 1960 and later. |
$1,939/mo.
(Age 65 and 6 months)
|
$2,053/mo.
(Age 65 and 8 months)
|
| SSI Resources Limits: |
2005 |
2006 |
| Individual |
$2,000 |
$2,000 |
| Couple |
$3,000 |
$3,000 |
| Estimated Average Monthly Social Security Benefits
Payable in January 2006: |
Before
4.1% COLA |
After
4.1% COLA |
| All Retired Workers |
$ 963 |
$1,002 |
| Aged Couple, Both Receiving
Benefits |
$1,583 |
$1,648 |
| Widowed Mother and Two
Children |
$1,992 |
$2,074 |
| Aged Widow(er) Alone |
$ 929 |
$ 967 |
| Disabled Worker, Spouse
and One or More Children |
$1,509 |
$1,571 |
| All Disabled Workers |
$ 902 |
$ 939 |
|
www.socialsecurity.gov
