As expected, Social Security's Cost Of Living Adjustment (COLA)
will be 1.5% this year.
Update: Here are all the
numbers released today:
Social Security (OASDI) Program Rates & Limits |
2014 |
Tax Rates (percent) |
|
Social Security (Old-Age, Survivors, and Disability Insurance) |
|
Employers and Employees, each a |
6.20 |
Medicare (Hospital Insurance) |
|
Employers and Employees, each a,b |
1.45 |
Maximum Taxable Earnings (dollars) |
|
Social Security |
117,000 |
Medicare (Hospital Insurance) |
No limit |
Earnings Required for Work Credits (dollars) |
|
One Work Credit (One Quarter of Coverage) |
1,200 |
Maximum of Four Credits a Year |
4,800 |
Earnings Test Annual Exempt Amount (dollars) |
|
Under Full Retirement Age for Entire Year |
15,480 |
For Months Before Reaching Full Retirement Age in Given Year |
41,400 |
Beginning with Month Reaching Full Retirement Age |
No limit |
Maximum Monthly Social Security Benefit for Workers Retiring at Full Retirement Age (dollars) |
2,642 |
Full Retirement Age |
66 |
Cost-of-Living Adjustment (percent) |
1.5 |
a. Self-employed persons pay a total of 15.3 percent—12.4 percent for OASDI and 2.9 percent for Medicare. |
b. This rate does not reflect
the additional 0.9 percent in Medicare taxes certain high-income
taxpayers are required to pay. See IRS information on this topic. |
Supplemental Security Income (SSI) Program Rates & Limits |
2014 |
Monthly Federal Payment Standard (dollars) |
|
Individual |
721 |
Couple |
1,082 |
Cost-of-Living Adjustment (percent) |
1.5 |
Resource Limits (dollars) |
|
Individual |
2,000 |
Couple |
3,000 |
Monthly Income Exclusions (dollars) |
|
Earned Income a |
65 |
Unearned Income |
20 |
Substantial Gainful Activity (SGA) Level for the Nonblind Disabled (dollars) |
1,070 |
a. The earned income exclusion consists of the first $65 of monthly earnings, plus one-half of remaining earnings. |
2 comments:
The Average Wage Index (AWI) for 2012 was also released today ($44,321.67). This is up 3.1% from 2011, more than expected. Social Security benefits are directly related to the AWI in the year a person turns 60.
I guess it's good that the COLA released today is rather small, since it might make it harder to argue that it is too generous (as people pushing the chained CPI do).
still more generous than the COLA employees have received in the past three years (0.0%) and what is expected in 2012 (1.0%).
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