Couple sitting on bench

Social Security beneficiaries get the biggest raise in six years


A 2% increase in benefits will be available for the more than 66 million Social Security and Supplemental Security Income recipients next year, the largest increase since 2012, though still small by historical standards.

The annual increase is determined by taking the average rate of inflation – determined by the Bureau of Labor Statistics’ broad measure of prices for food, housing, clothing, transportation, energy, medical care, recreation and education – from the third quarter of one year to the next. With low inflation throughout the economic recovery, adjustments have been slight or nonexistent. The 2% gain translates into an approximate $27-a-month increase for all retired workers, from $1,377 to $1,404.

Estimated Average Monthly Social Security Benefits Payable in January 2018

   Before 2% COLA  After 2% COLA
 All retired workers  $1,377  $1,404
 Aged couple, both receiving benefits  $2,294  $2,340
 Widowed mother and two children  $2,717  $2,771
 Aged widow(er) alone  $1,310  $1,336
 Disabled worker, spouse and one or more children  $2,011  $2,051
 All disabled workers   $1,173  $1,197

For those who are still working, the government also announced it will increase the maximum amount of earnings subject to the Social Security tax to $128,700 from $127,200, starting in January.

Source: Social Security Administration Fact Sheet – 2018 Social Security Changes, Oct. 13, 2017.

Need more insight? Let us be your guide.

Our national network of experienced financial advisors can help you create a personalized plan to help you identify financial goals and get you where you want to go in life.

Find an Advisor

Associated Tags: Retirement

This information is provided for informational and educational purposes only. Waddell & Reed believes the information has been obtained from sources considered to be reliable, but does not guarantee the accuracy of the information provided. This information is not meant to be a complete summary or statement of all available data necessary for making financial or investment decisions and does not constitute a recommendation.

Please note that the information provided may include references to concepts that have legal, accounting and tax implications. It is not to be construed as legal, accounting or tax advice, and is provided as general information to you to assist in understanding the issues discussed. Neither Waddell & Reed, Inc., nor its Financial Advisors give tax, legal, or accounting advice.

This information is not meant as financial or investment advice pertaining to your personal situation. The selection of appropriate investment, insurance or planning options and/or strategies should be made on an individual basis after consultation with appropriate legal, tax and financial advisors. Nothing contained herein is intended as a solicitation or an offer to buy or sell any product or service mentioned and they may not be suitable for all investors.

Securities offered through Waddell & Reed, Inc., Member FINRA/SIPC, are not insured by FDIC, NCUA or any other government agency, are not deposits or obligations of the financial institution, are not guaranteed by the financial institution, and are subject to risks, including the possible loss of principal. Insurance products are offered through insurance companies with which Waddell & Reed has sales arrangements. Guarantees provided by insurance products are subject to the claims-paying-ability of the issuing insurance company.

Related Insights

Two older people looking at a phone

9 facts about Social Security

Social Security has been around since 1935… but what do you really know about it? Here are nine things about Social Security that might surprise you.

Read More
Woman puts money into a piggy bank.

Dividend Investing: Small Payments Can Boost Returns

May 18, 2018

Investing is full of choices. Stocks or bonds? Mutual funds or individual securities? Capital appreciation or dividend payments? If you’re unfamiliar with those last two terms, you may be missing out on an important investment strategy.

Read More
Retirement Goals

Four points to consider when setting a retirement income goal

Have you thought about how much monthly income you’ll need to retire comfortably? If not, you’ll want to consider these four questions as you set your retirement income goals.

Read More

Market Data powered by Wikinvest. Data is provided as-is, delayed, and subject to Terms