Cost-of-Living Adjustment (COLA) for 2009: 5.8 percent
Number of People Paying Into Social Security: 164 million
Percentage of American Workers Covered by Social Security: 94%
Number of People Receiving Social Security:
Total OASDI Beneficiaries:49.6 million
Retirees and their families:34.8 million
Survivors of deceased workers:6.5 million
Disabled workers and their families:9.0 million
Estimated Average Monthly Benefit
Retired worker:$1,153
Retired couple:$1,876
Disabled worker:$1,064
Disabled worker, Spouse and One or More Children:$1,793
Aged widow or widower:$1,112
Widow mother with two children:$2,399
Maximum Social Security Benefit: $2,323/mo. (Worker Retiring at Full Retirement Age)
Retirement Earnings Test Exempt Amounts:
Under full retirement age
$14,160/yr.
($1,180/mo.)
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.
The year an individual reaches full retirement age
$37,680/yr.
($3,140/mo.)
NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit.
Total tax rate paid by self-employed:15.3% (12.4% – OASDI, 2.9% - HI)
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 taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings.
Maximum Taxable Earnings Base
OASDI:$106,800
HI:No Limit
Federal Income Taxes on Benefits
Single:
Under $25,000 income—tax free
Between $25,000-$34,000 – 50% added to Adjusted Gross Income (AGI)
Over $34,000 – 85% added to AGI
Married:
Under $32,000 income – tax free
$32,000 to $44,000 – 50% added to AGI
Over $44,000 – 85% added to AGI
(Note: Effective tax rate depends on seniors' overall tax bracket)