Since 1975 the United States Social Security Administration’s general benefit increases have been based on increases in the cost of living, as measured by the U.S. Consumer Price Index. Prior to 1975 the benefit increases were set by legislation. These increases are called Cost-Of-Living Adjustments, or COLAs, and allow Social Security and Supplemental Security Income (SSI) benefits to keep pace with inflation. The Social Security Administration determined a 0.3% COLA on October 18, 2016, and the new figures for 2017 have been released. See Social Security website Cost-Of-Living Adjustment (COLA).
The adjusted amounts generally apply for plan years beginning in 2017; however, some of the adjusted amounts apply to calendar year 2017. Ally Law member firm Varnum, LLP has published an easy-to-read summary with tables of the newly-announced increases, which includes the following helpful information as to applicable Social Security retirement ages for Social Security benefit eligibility:
|Social Security Retirement Age|
|Year of Birth||Retirement Age|
|Prior to 1938||Age 65|
|1938||65 and 2 months|
|1939||65 and 4 months|
|1940||65 and 6 months|
|1941||65 and 8 months|
|1942||65 and 10 months|
|1943 – 1954||66|
|1955||66 and 2 months|
|1956||66 and 4 months|
|1957||66 and 6 months|
|1958||66 and 8 months|
|1959||66 and 10 months|
Among other essential tax and retirement planning information, the COLA release contains the income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs, and to claim the saver’s credit; all increased for 2017.
If you have questions or concerns about your Social Security eligibility or benefits, or if your company needs to reexamine your Employee Benefit Plans and Health Savings Accounts Plans to account for COLA increases or investigate best practices for such plans, consult the tax and/or employee benefits department of your Ally Law member firm. Ally Law member firms have attorneys skilled in the interpretation and implementation of retirement and benefits regulations to best suit your company’s needs in virtually every country. For more information about Ally Law member firm services in this area, contact us at firstname.lastname@example.org.