Social Security payments will increase in 2014

November 2013 image.jpgSocial Security benefits will increase by 1.5 percent next year.  This amount to an average increase of $19 per month.  The automatic Cost of Living Adjustment (COLA) is based on the consumer price index and is meant to help beneficiaries maintain a standard of living and keep them from falling into poverty as prices of general good increases.

The COLA affects benefits for not only Social Security programs such as disability and Supplemental Security Income, but also disabled veterans, and federal retirees.

In addition, the amount of wages subject to the Social Security tax is also increasing almost 3%, to $117,000. 

This COLA adjustment is slightly lower than last year’s increase of 1.7%, but is an improvement over 2010 and 2011 where there was no COLA because inflation was too low. 

Medicare Part B premiums, which have traditionally also increased in past years thereby erasing the COLA increase, will remain the same as last year. 

Beneficiaries will see the increase begin in January.

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Attorney Jennifer J. Allen is an associate attorney with Alan C. Olson & Associates, S.C.  If you have any questions about Social Security Disability, please contact her at [email protected]

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