SSA Announces 2.8% COLA For 2019
Today the Social Security Administration (SSA) announced the cost of living adjustment (COLA) for 2019 will be 2.8%. This is higher than last year's 2.0% raise and the largest increase since the COLA in 2011 of 3.6%. Click here for full list of COLAs since 1975.
The average monthly SSDI benefit will increase to $1,234 from $1,200, an increase of $34 (or $408 annually), according to SSA. The COLA is based on third-quarter results reported by the U.S. Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
The amount of earnings subject to Social Security tax, or taxable maximum, will increase to $132,900 from $128,400. The SSA outlines additional details in its Fact Sheet.
- Substantial gainful activity (SGA). The monthly threshold for non-blind will increase to $1,220 per month from $1,180 per month. For blind, it will increase to $2,040 per month from $1,970 per month.
- Quarter of coverage. Earnings required for a quarter of coverage increases to $1,360 from $1,320. This refers to the amount of earnings required, per quarter, to receive insured status for retirement and disability benefits.
- Trial Work Period (TWP). The monthly TWP threshold increases to $880 per month from $850 per month.
The increase takes effect in January 2019 for more than 62 million Social Security beneficiaries.
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