Social Security Changes to Come in 2015

Social Security BenefitsBeginning in 2015, there will be several changes to take place in Social Security.

The first change to take effect is recipients will receive a 1.7 percent increase in their benefits as a result of the cost-of-living adjustment. In 2014, the average monthly benefit was $1,306. With the aforementioned adjustment, the average monthly benefit will be $1,328 in 2015. The maximum amount of social security benefits received by someone who signs up at full retirement age will be $2,663 in 2015, up from $2,642 in 2014.

Another anticipated change is the increase in the maximum amount of earnings subject to Social Security tax. In 2015, the maximum earnings will increase to $118,500 from the $117,000 in 2014.

There will also be larger earning limits. Beneficiaries who will turn 65 in 2015 and are signed up for Social Security can earn up to $41,880 before $1 is withheld for every $3 earned above this limit. For beneficiaries under the age of 66 in 2015, they can earn up to $15,720 before $1 is withheld for every $2 earned over this limit.

Lastly, if you do not have a Social Security online account and are turning age 25, 30, 35, 40, 45, 50, 55 or 60 in 2015, expect to receive a statement for the Social Security Administration with you earnings history, taxes paid and anticipated benefit approximately 3 months before your birthday. After the age of 60, workers are to expect an annual statement. If you would like to create an online account, please visit socialsecurity.gov/myaccount. This service allows you to review your account at anytime.

If you have any questions regarding social security, please do not hesitate to contact us.

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