Social Security Cost Of Living Adjustment (AP)
Washington, DC (WLTX) -- Benefits for nearly 63 million Americans receiving Social Security and Supplemental Security Income (SSI) will increase in 2014.
The Social Security Administration announced Thursday the 1.5% cost of living benefits adjustment (COLA) will start with monthly Social Security benefit recipients in January of next year.
The increase to SSI beneficiaries will begin December 31st of this year.
For additional information on changes to Medicare for 2014, recipients are encouraged to visit www.Medicare.gov.
For additional information on how the COLA is calculated, visit www.socialsecurity.gov/cola.
Benefit Changes From the Social Security Administration:
Cost-of-Living Adjustment (COLA):
Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2012 through the third quarter of 2013, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 1.5 percent COLA for 2014.
In addition, the SSA offered the following income and benefit guidelines for informational purposes:
Employee 7.65% 7.65%
Self-Employed 15.30% 15.30%
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. Also, as of January 2013, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes. The tax rates shown above do not include the 0.9 percent.
Maximum Taxable Earnings:
Social Security (OASDI only) $113,700 $117,000
Medicare (HI only) N o L i m i t
Quarter of Coverage: $1,160 $1,200
Retirement Earnings Test Exempt Amounts:
Under full retirement age $15,120/yr. $15,480/yr.
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.
The year an individual reaches full retirement age
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.
There is no limit on earnings beginning the month an individual attains full retirement age.
Social Security Disability Thresholds:
Substantial Gainful Activity (SGA)
Non-Blind $1,040/mo. $1,070/mo.
Blind $1,740/mo. $1,800/mo.
Trial Work Period (TWP) $ 750/mo. $ 770/mo.
Maximum Social Security Benefit: Worker Retiring at Full Retirement Age:
SSI Federal Payment Standard:
Individual $ 710/mo. $ 721/mo.
Couple $1,066/mo. $1,082/mo.
SSI Resources Limits:
Individual $2,000 $2,000
Couple $3,000 $3,000
SSI Student Exclusion:
Monthly limit $1,730 $1,750
Annual limit $6,960 $7,060
Estimated Avg. Monthly Social Security Benefits
Payable in January 2014:
Before 1.5% COLA After 1.5% COLA
All Retired Workers $1,275 $1,294
Aged Couple, Both Receiving Benefits $2,080 $2,111
Widowed Mother and Two Children $2,583 $2,622
Aged Widow(er) Alone $1,225 $1,243
Disabled Worker, Spouse
and one or More Children $1,914 $1,943
All Disabled Workers $1,131 $1,148