January 2001
| Cost-of-Living Adjustment (COLA): | ||
| Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 1999 through the third quarter of 2000, Social Security beneficiaries and Supplemental Security Income (SSI) recipients will receive a 3.5 percent COLA for 2001. Other important 2001 Social Security information is as follows: | ||
| Tax Rate: | 2000 | 2001 |
| 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 maximum taxable amount (see below). The Medicare portion (HI) is 1.45% on all earnings. | ||
| Maximum Earnings Taxable: | 2000 | 2001 |
| Social Security (OASDI only) | $76,200 | $80,400 |
| Medicare (HI only) | N o L i m i t | |
| 2000 | 2001 | |
| Quarter of Coverage: | $780 | $830 |
| Retirement Earnings Test Exempt Amounts: | ||
| As of January 2000, the Retirement Earnings Test has been eliminated for individuals age 65-69. It remains in effect for those ages 62 through 64. A modified test applies for the year an individual reaches age 65. (The Senior Citizens’ Freedom To Work Act of 2000, signed into law by President Clinton on April 7, 2000.) | ||
| 2000 | 2001 | |
| Year individual reaches 65 |
$17,000/yr. ($1,417/mo.) |
$25,000/yr. ($2,084/mo.) |
| NOTE: Applies only to earnings for months prior to attaining age 65. One dollar in benefits will be withheld for every $3 in earnings above the limit. There is no limit on earnings beginning the month an individual attains age 65. | ||
| Under age 65 |
$10,080/yr. ($840/mo.) |
$10,680/yr. ($890/mo.) |
| NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit. | ||
| Maximum Social Security Benefit: | Worker Retiring at Age 65 in January of 2000 and 2001 | |
| $1,433/mo. | $1,536/mo. | |
| SSI Federal Payment Standard: | 2000 | 2001 |
| Individual | $512/mo. | $530/mo. |
| Couple | $769/mo. | $796/mo. |
| SSI Resources Limits: | 2000 | 2001 |
| Individual | $2,000 | $2,000 |
| Couple | $3,000 | $3,000 |
| Estimated Average Monthly Social Security Benefits: |
Before and After the December 2000 COLA: | |
| Before 3.5% COLA |
After 3.5% COLA |
|
| All Retired Workers | $ 816 | $ 845 |
| Aged Couple, Both Receiving Benefits | $1,363 | $1,410 |
| Widowed Mother and Two Children | $1,639 | $1,696 |
| Aged Widow(er) Alone | $ 783 | $ 811 |
| Disabled Worker, Spouse and One or More Children |
$1,266 | $1,310 |
| All Disabled Workers | $ 759 | $ 786 |