The year 2015 will see some positive changes in Social Security. Beneficiaries of the program will receive a 1.7% increase in payments, and some workers will receive statements of benefits in the mail showing their future retirement benefit.
The 1.7% cost of living increase will amount to about $22 more per month for a typical retiree. For retired couples who both receive benefits, this amount is projected to be $36 more per month.
The average total monthly benefit for an individual will be about $1,328; and for a couple, this amount should be about $2,176.
Each year, social security payments are adjusted to accommodate inflation as determined by the consumer price index for wage earners. The 2015 increase is like those received in 2013 and 2014.
Another change is termed as a higher tax cap. The maximum taxable earnings increase from $117,000 in 2014 to $118,500 in 2015. As a result of this change more than 10 million of the 168 million wage earners who pay into social security could face higher taxes.
Limits on earnings for social security beneficiaries under 66 years old have been increased to $15,720 before the withholding amount kicks in which is 1.00 for every 2.00 earned above the limit. Retirees who will turn 66 in 2015 and are scheduled to receive benefits can earn up to $41,880 before the 1.00 for 3.00 withholding amount initiates.
When a payee reaches the age of 66, there is no limit on earnings. Payments will be recalculated, and the retiree will receive credit for anything withheld from their payments.
Social security statements were suspended in 2011 to save costs. For 2015, those who reach 25, 30, 35, 40, 45, 50, 55, 60 years of age should receive statements about 3 months prior to their birthday. Anyone can go to the Social Security website, socialsecurity.gov/myaccount, and get their automated statement.
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Kenneth G. Marks Law Firm
Social Security Law Attorney
24422 Avenida de la Carlota,
Laguna Hills, CA 92653
Phone: 949.543.1899, Fax: 949.748.6474