Social Security and Supplemental Security Income (SSI) benefits will increase by 2.8% in 2019, the Social Security Administration announced. This is in keeping with an increase in the cost of living, as measured by the Department of Labor (DOL)’s Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Federal law requires the Social Security Administration to make cost of living adjustments (COLA) tied to this index.
As a result, more than 67 million Americans will see their Social Security and SSI benefits rise in the coming year.
In addition, the maximum amount of earnings subject to the Social Security payroll tax and the retirement earnings tax exemption amount will change for 2019. The taxable maximum will increase to $132,900. The earnings limit for people born in 1943 through 1954 will increase to $17,640, with $1 of benefits deducted for each $2 earned over $17,640. The earnings limit for people turning 66 in 2019 will increase to $46,920, and the administration will deduct $1 from benefits for each $3 earned over this amount until the month the worker turns age 66. There is no limit on earnings for workers who are at full retirement age, i.e. 66 or older for the entire year.
Americans will be able to see how their benefits are impacted in December, when the administration will post Social Security COLA notices online for retirement, survivors and disability beneficiaries who have a Social Security account.
Beneficiaries can opt to continue receiving their COLA notices by mail or online.