Social Security and SSI Disability Benefit Amounts and COLA for 2018

The Social Security Administration has announced a 2% increase in Social Security and Supplemental Security Income (SSI) benefits for 2018.

By , Attorney

The Social Security Administration has announced a 2% increase in Social Security and Supplemental Security Income (SSI) benefits for 2018. Increased payments to Social Security recipients begin January 1, 2018, while increased payments to SSI recipients begin on December 29, 2017. Other numbers regarding eligibility for disability and average benefits have also changed for 2018.

Social Security and SSI Benefit Amounts

The new SSI federal base amount is $750 per month for an individual and $1,125 per month for a couple. The SSI payment amounts are higher in states that pay a supplementary SSI payment.

While exact Social Security retirement and disability benefit amounts depend on the lifetime earnings of the recipient, here are the average benefit amounts anticipated for 2018:

  • average retirement benefit: $1,404
  • average disability benefit: $1,197
  • average surviving spouse benefit: $1,336.

The maximum Social Security retirement benefit that can be collected at full retirement age is $2,788 per month in 2018, though few people are able to collect this amount.

Note that, for some Social Security recipients, the 2% increase may be partially offset by increases in Medicare Part B premiums.

Eligibility for Disability and Working

An applicant for disability benefits through the Social Security disability insurance (SSDI) or SSI programs must be making less than $1,180 per month (up from $1,170 per month in 2017) to qualify for benefits. (Blind applicants can make up to $1,970 per month). Anyone working above those limits is considered to be doing "substantial gainful activity" (SGA).

People who are currently receiving SSDI who attempt to return to work through a trial work program will have a month count as a trial work period month if they make more than $850 per month (up from $840 per month in 2017).

For people who are receiving SSI, the new federal income limit for SSI is $750 per month, but complicated rules govern what income is countable and what income is not. Over half of the income made by an SSI recipient is not counted toward the limit, so you can actually receive SSI until you make up to $1,584 per month (if you have no other income). However, any income received between $0 and $1,584 will reduce the monthly benefit. In some states that make extra payments to SSI recipients, the income limit for SSI recipients may be higher.

The income exclusion amount for students receiving SSI is now $1,820 per month (up to an annual limit of $7,350).

Early Retirement and Working

Those who collect early retirement benefits but continue to work have their benefits reduced when they make over $17,040 per year ($1,420 per month). But in the year the recipient reaches full retirement age, he or she can make up to $3,780 per month without having retirement benefits taken away. (After the worker reaches full retirement age, benefits aren't reduced at all, regardless of the amount of work or earnings.) However, any early retirement benefits deducted while you were working are added back to your retirement check over the next 10-15 years.)

Amount of Social Security Taxes Withheld

The maximum amount of earnings that is subject to the Social Security tax is $128,400 in 2018, up from $127,200 in 2017. There is no limit to the amount of income subject to the Medicare tax.

The Social Security figures and limits for 2019 can be found in the 2019 update.