| |
Cost-of-Living Adjustment (COLA):
Based on the increase in the Consumer Price Index
(CPI-W) from the third quarter of 2003 through the third quarter
of 2004, Social Security and Supplemental Security Income (SSI)
beneficiaries will receive a 2.7 percent COLA for 2005. Other
important 2005 Social Security information is as follows:
|
| Tax
Rate |
2004 |
2005 |
| 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: |
2004 |
2005 |
| |
$87,900 |
$90,000 |
| Medicare (HI only) |
No
Limit |
| Retirement
Earnings Test Exempt Amounts: |
2004 |
2005 |
| Under full retirement
age
NOTE: One dollar in benefits will
be withheld for every $2 in earnings above the limit. |
$11,640/yr.
($970/mo.) |
$12,000/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. |
$31,080/yr.
($2,590/mo.) |
$31,800/yr.
($2,650/mo.) |
| There is no limit
on earnings beginning the month an individual attains full retirement
age (65 and 4 months for retirees born in 1939; 65 and 6 months
for those born in 1940). |
| Social Security
Disability Thresholds: |
2004 |
2005 |
| Substantial
Gainful Activity (SGA) |
Non-Blind |
$ 810/mo. |
$ 830/mo. |
| Blind |
$1,350/mo. |
$1,380/mo. |
| Trial Work Period
(TWP) |
$ 580/mo. |
$ 590/mo. |
Maximum Social Security Benefit:
Worker Retiring at Full Retirement Age in |
2004
|
2005
|
| NOTE: For retirees born
in 1939, full retirement age is 65 and 4 months; for those born
in 1940, it is 65 and 6 months. Full retirement age will gradually
increase to age 67 for those born in 1960 and later. |
$1,825/mo.
(Age 65 and 4 months)
|
$1,939/mo.
(Age 65 and 6 months)
|
| SSI Resources Limits: |
2004 |
2005 |
| Individual |
$2,000 |
$2,000 |
| Couple |
$3,000 |
$3,000 |
| Estimated Average Monthly Social Security Benefits
Payable in January 2005: |
Before
2.7% COLA |
After
2.7% COLA |
| All Retired Workers |
$ 930 |
$ 955 |
| Aged Couple, Both Receiving
Benefits |
$1,532 |
$1,574 |
| Widowed Mother and Two Children |
$1,927 |
$1,979 |
| Aged Widow(er) Alone |
$ 896 |
$ 920 |
| Disabled Worker, Spouse and
One or More Children |
$1,458 |
$1,497 |
| All Disabled Workers |
$ 871 |
$ 895 |
|
www.socialsecurity.gov
