 The 1.5 percent cost-of-living adjustment will begin with benefits
that more than 57 million Social Security beneficiaries receive in
January 2014. Increased payments to more than 8 million Supplemental
Security Income, or SSI, beneficiaries will begin on Dec. 31.Some
other changes that take effect in January of each year are based on
the increase in average wages. Based on that increase, the maximum
amount of earnings subject to the Social Security tax will increase
to $117,000 from $113,700. Of the estimated 165 million workers who
will pay Social Security taxes in 2014, about 10 million will pay
higher taxes as a result of the increase in the taxable maximum.
Information about Medicare changes for 2014 is available at
www.medicare.gov.
The Social Security Act provides for how the cost-of-living
adjustment, or COLA, is calculated. To read more, visit
www.socialsecurity.gov/cola.
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For a fact sheet on the other changes that accompany the 2014
cost-of-living adjustment, visit
http://www.socialsecurity.gov/
pressoffice/factsheets/colafacts2014.html
or click here
(PDF).
The fact sheet linked above compares changes from 2013 to 2014 in
the cost-of-living adjustment, tax rate, maximum taxable earnings,
quarter of coverage, retirement earnings test exempt amounts, Social
Security disability thresholds, maximum Social Security benefit, SSI
federal payment standard, SSI resource limits, SSI student
exclusion, and estimated average monthly Social Security benefits
payable in January 2014.
[Text from
Social Security Administration news
release] |
