The Social Security Administration recently announced that Social Security and Supplemental Security Income (SSI) benefits for more than 65 million Americans will increase 0.3 percent beginning in 2017. There was no Cost-of-Living Adjustment (COLA) in 2016.
This is welcome news for millions of retirees whose expenses may have increased while their benefits have been flat. As a result of this, the maximum benefit paid at someone’s full retirement age (FRA) will be $2,687/month.
Those who are younger than their FRA – age 66 for people born in 1943 through 1954 – and receiving benefits will not be able to earn more than $16,920 next year without a reduction in benefits. This earnings reduction equals $1 from benefits for each $2 earned over the limit. Last year’s earnings limit was $15,720.
The earnings limit for people turning 66 in 2017 will increase to $44,880. This earnings reduction is only applicable in the year a worker turns their FRA until the month the worker actually turns their FRA. This reduction is $1 from benefits for each $3 earned over $44,880.
There is no limit on earnings for workers who are at their full retirement age or older for the entire year.
The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase as well to $127,200 from $118,500.
Read more about the COLA, tax, benefit and earning amounts for 2017.
This information is not intended to be a substitute for individualized tax or legal advice. Please consult the appropriate advisor regarding your specific situation.