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November 4, 2013 – Monthly Social Security and Supplemental Security Income (SSI) benefits for nearly 63 million Americans will increase 1.5 percent in 2014, the Social Security Administration announced last week. The COLA announcement was delayed because of the government shutdown.
The 1.5 percent cost-of-living adjustment (COLA) will affect the benefits that more than 57 million Social Security beneficiaries receive in January 2014. Last year the increase was 1.7%, although the average since the ’70’s has been 4%. In 2013 the average SS benefit per was $2,048 per retired couple.
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 (taxable maximum) will increase to $117,000 from $113,700. About 10 million workers will pay higher Social Security taxes as a result of the increase in the taxable maximum.
2014 changes in Medicare were also announced. Part B premiums and deductibles won’t change in 2014, although there will be some changes in Part A premiums (a slight decrease for some who pay them) and deductibles.