Hello, everyone.
There is an important new development concerning all types of benefits that the Social Security Administration (SSA) pays. SSA announced recently that monthly Social Security and Supplemental Security Income (SSI) benefits will increase by 1.5 percent for more than 63 million Americans. This includes not only disabled individuals, but retirees and survivors and beneficiaries. This is because of the 2014 cost-of-living adjustment (COLA).
That's a large number of people and just goes to show you that SSA's various benefit programs have a major impact upon the lives of millions of Americans. In addition, the economic impact is felt in our economy because those millions of Americans use their benefits to buy goods and services.
The 1.5 percent cost-of-living adjustment (COLA) will begin with benefits that Social Security beneficiaries receive in January 2014. Increased payments to SSI beneficiaries will begin on December 31, 2013.
Here are just a few of the changes in amounts. The Substantial Gainful Activity threshold will increase from $1,040 to $1,070 per month for non-blind individuals and the maximum SSI benefit will increase from $710 to $721 per month for individuals and from $1,066 to $1,082 per month for couples. The average benefit for a disabled worker in 2014 has increased from $1,131 per month to $1,148 per month.
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. 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.
As you may know, individuals who are found entitled to Disability Insurance Benefits can receive Medicare benefits prior to age 65. For changes in Medicare premiums in 2014, please visit Medicare.gov.
The stated purpose of the COLA is to ensure that the purchasing power of Social Security and SSI benefits is not eroded by inflation. It is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the last year a COLA was determined, to the third quarter of the current year. If there is no increase, there can be no COLA.
Currently, there is a debate in this country as to whether the CPI-W is the best index to use to determine Social Security's COLA. A web search on this issue brings up many interesting pages on this important topic. Your input is important to strengthen Social Security's needed and helpful programs for future generations. Please make your voice heard.
The following is a link to a fact sheet on SSA's website concerning the new figures based upon the 2014 COLA:
http://www.ssa.gov/pressoffice/facts...facts2014.html
Rich
There is an important new development concerning all types of benefits that the Social Security Administration (SSA) pays. SSA announced recently that monthly Social Security and Supplemental Security Income (SSI) benefits will increase by 1.5 percent for more than 63 million Americans. This includes not only disabled individuals, but retirees and survivors and beneficiaries. This is because of the 2014 cost-of-living adjustment (COLA).
That's a large number of people and just goes to show you that SSA's various benefit programs have a major impact upon the lives of millions of Americans. In addition, the economic impact is felt in our economy because those millions of Americans use their benefits to buy goods and services.
The 1.5 percent cost-of-living adjustment (COLA) will begin with benefits that Social Security beneficiaries receive in January 2014. Increased payments to SSI beneficiaries will begin on December 31, 2013.
Here are just a few of the changes in amounts. The Substantial Gainful Activity threshold will increase from $1,040 to $1,070 per month for non-blind individuals and the maximum SSI benefit will increase from $710 to $721 per month for individuals and from $1,066 to $1,082 per month for couples. The average benefit for a disabled worker in 2014 has increased from $1,131 per month to $1,148 per month.
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. 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.
As you may know, individuals who are found entitled to Disability Insurance Benefits can receive Medicare benefits prior to age 65. For changes in Medicare premiums in 2014, please visit Medicare.gov.
The stated purpose of the COLA is to ensure that the purchasing power of Social Security and SSI benefits is not eroded by inflation. It is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the last year a COLA was determined, to the third quarter of the current year. If there is no increase, there can be no COLA.
Currently, there is a debate in this country as to whether the CPI-W is the best index to use to determine Social Security's COLA. A web search on this issue brings up many interesting pages on this important topic. Your input is important to strengthen Social Security's needed and helpful programs for future generations. Please make your voice heard.
The following is a link to a fact sheet on SSA's website concerning the new figures based upon the 2014 COLA:
http://www.ssa.gov/pressoffice/facts...facts2014.html
Rich
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