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.