Volume 10 Issue 1 - January 2009
Changes to Social Security in 2009
The 5.8 percent cost-of-living adjustment (COLA) will begin with benefits that over 50 million Social Security beneficiaries receive in January 2009. Increased payments to more than seven million SSI beneficiaries will begin on December 31.
Other changes: In 2008, the maximum taxable amount was $102,000. Beginning in 2009, the maximum taxable amount will be $106,800. This change will affect about 10 million of the 164 million workers who pay Social Security taxes. The tax rate remains the same: 6.2 percent for employers and employees, and 12.4 percent for the self-employed.
In 2009, it will take $1,090 in taxable earnings for a credit of Social Security coverage, up from $1,050 in 2008. All workers can earn up to four credits in a year. The average retired worker will receive $1,153 per month in Social Security benefits in 2009, up from $1,090 in 2008.
To learn more about Social Security changes coming in 2009, visit the Social Security online fact sheet at www.socialsecurity.gov/pressoffice/factsheets/colafacts2009.htm.