Social Security Benefits to Increase by 1.7 Percent in 2015 Thanks to COLA
The Social Security Administration (SSA) has made its annual analysis of the Consumer Price Index and determined there will be a 1.7 percent increase in Social Security benefits. Beginning December 31, 2014, SSI recipients will see their 1.7 percent increase, and other Social Security beneficiaries will see the increase take effect in January 2015. This increase, known as a Cost of Living Adjustment or COLA, is an annual occurrence when the Department of Labor’s Bureau of Labor Statistics finds an increase in the Consumer Price Index.
The other annual change that Social Security recipients may notice starting in January 2015 will be the increase in the maximum amount of earnings that are subject to taxation by Social Security. The 2014 maximum taxable rate of $117,000 will increase to $118,500 at the start of the new year. The SSA estimates that of the 168 million workers paying Social Security taxes in 2015, about 10 million will pay higher taxes due to this increase.
This is the fourth year in a row that the Social Security Administration has announced a COLA. For Supplemental Security Income (SSI) recipients, this means the 2015 annual amount for an individual will increase from $8,657.26 to $8,804.43 or an average monthly payment of $733. For a couple it will increase from $12,984.44 to $13,205.18 or $1,100 per month.
The COLA is automatic for Social Security benefits, as well as veterans’ disability benefits. Only people who have begun collecting regular Social Security benefits or those who have filed and been approved for disability benefits will receive the 1.7 percent increase. If you have not yet collected disability benefits and you believe you are entitled to do so, contact Disability Help Group to begin your claim. Call today – 1-(800)-800-3332.