Skip to main content
U.S. flag An official website of the United States government Here's how you know

Official websites use .gov
A .gov website belongs to an official government organization in the United States.

Secure .gov websites use HTTPS
A lock ( ) or https:// means you've safely connected to the .gov website. Share sensitive information only on official, secure websites.

...
What to Know about Proving Your Identity
Social Security
X
Benefits
BY PHASE
  • Prepare
  • Apply
  • Manage benefits
BY TYPE
  • Retirement
  • Disability
  • Survivor
  • Family
  • Supplemental Security Income (SSI)

Benefits overview
Medicare
  • Plan for Medicare
  • Sign up for Medicare
  • Request to lower IRMAA
  • Apply for Part D Extra Help
  • Manage Medicare benefits
Card & record
  • Number & card
  • Personal record
Español
Sign in
Menu

Press Office (Subscribe)

Menu

  • Contact the Press Office
  • Press Releases
  • Reports, Facts and Figures
  • Social Security Update
  • Follow us @SSAPress
  • COLA

Press Release  (En español)

Tuesday, October 19, 2004
For Immediate Release
Jim Courtney, Press Officer
press.office@ssa.gov
News Release SOCIAL SECURITY

Social Security Announces 2.7 Percent Benefit Increase for 2005

Social Security and Supplemental Security Income benefits increase automatically each year based on the rise in the Bureau of Labor Statistics' Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), from the third quarter of the prior year to the corresponding period of the current year. This year's increase in the CPI-W was 2.7 percent.

The 2.7 percent Cost-of-Living Adjustment (COLA) will begin with benefits that more than 47 million Social Security beneficiaries receive in January 2005. Increased payments to 7 million Supplemental Security Income beneficiaries will begin on December 30.

Some other changes that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $90,000 from $87,900. Of the estimated 159 million workers who will pay Social Security taxes in 2005, about 9.9 million will pay higher taxes as a result of the increase in the taxable maximum in 2005.

It is important to note that no one's Social Security benefit will decrease as a result of the 2005 Medicare Part B premium increase, announced last month. By law, the Part B premium increase cannot be larger than a beneficiary's COLA increase. Information about Medicare changes for 2005 can be found at www.hhs.gov - The Internet site for the Department of Health and Human Services.

NOTE TO CORRESPONDENTS: A fact sheet showing the effect of the various automatic adjustments is attached.

Support
  • Contact us
  • Find an office
  • Forms
  • Publications
  • Report fraud
Languages
  • Español
  • Other languages
  • Plain language
Services for
  • Employers & businesses
  • Representatives
  • Government agencies
  • Other groups
About
  • About SSA
  • Communications
  • Careers
  • Initiatives
  • Research & policy
  • Financial reports
Agency logo

SSA.gov

An official website of the Social Security Administration.


  • Accessibility support
  • Privacy policy
  • FOIA requests
  • Civil Rights/Compliance
  • Office of the Inspector General
  • Office of the Chief Actuary
  • Performance reports
  • System status
Looking for U.S. government information and services? Visit USA.gov