Most of the changes for 2008 affect people who already get Social Security, Supplemental Security Income (SSI) and Medicare benefits. But a few affect people who work and pay Social Security taxes.

Beginning with January 2008, monthly Social Security and SSI benefits will go up 2.3 percent. That means the average Social Security retirement benefit will rise to $1,079. Of course, the increase applies to all Social Security benefits, not just retirement payments. For example, the average disability check climbs to $1,004. And the average survivor payment to a widow goes up to $1,041 next year.

The basic SSI monthly payment rate for an individual rises to $637 and the rate for a couple increases to $956 in 2008.

People getting Social Security benefits while under their full retirement age, not disabled, and still working also have new annual earnings limits to take into consideration. Their earnings threshold in 2008 to be considered fully retired is $13,560. For every $2 earned over that limit, $1 must be withheld from any Social Security benefits next year that are not based on disability.

If you will reach full retirement age in 2008, you will have a higher annual earnings threshold of $36,120. For every $3 you earn over that amount, we must take $1 from any non-disability benefits you are due for months leading up to your full retirement age. When you reach your month of full retirement age your wages stop counting against the earnings limit.

An important message for Medicare beneficiaries is that the monthly Part B premium goes up to $96.40 in 2008.

Some of the 2008 updates affect people who are still working and paying Social Security taxes. A major change affects higher income workers making up to $102,000. Workers will pay into Social Security based on earnings up to this new maximum taxable limit. The combined Social Security and Medicare tax rate does not change, however, and remains at 7.65 percent for wage earners and 15.3 percent for self-employed people. Of this amount, 6.2 percent is the tax rate for Social Security on wage earners and 14.4 for the self-employed. The Medicare tax rate is 1.45 percent for wage earners and 2.9 percent for the self-employed. There is no maximum taxable earnings limit for Medicare taxes, however. In other words, all of your wages or self-employment income is subject to the Medicare tax.

The amount of income required to earn one credit of Social Security coverage is $1,050 in 2008. Once you make $4,200 you will have earned the maximum of four credits available. Most people need 40 credits to be eligible for Social Security retirement benefits. Fewer credits are sometimes needed for disability and survivors Social Security benefits.

(John Williams is Social Security public affairs specialist for east central Indiana.)