Social Security Announces Benefit Increase for 2015Wednesday, November 19, 2014
The Social Security Administration (SSA) has announced a 1.7% cost of living adjustment for 2015, benefitting more than 58 million people receiving Social Security. More than 8 million people who get Supplemental Security Income payments will also see the same benefit increase. How does the SSA determine if an adjustment is necessary? SSA uses the Consumer Price Index to determine cost of living adjustments. This adjustment is based on the increase in CPI for Wage Earners observed last year. Adjustments are made to offset the effects of inflation on fixed incomes. The same 1.7% increase adjustment was made in January of 2013. Another change that will take effect for 2015 is that maximum amount of earnings subject to Social Security tax will increase $1,500. This now means that up to $118,500 is subject to Social Security tax. It is estimated that 10 million people will pay higher taxes due to this increase.