Quick Tips - 2014 Social Security Benefits
Dear Client and Fellow Investor,
You've worked a lifetime for this valuable benefit and deciding when to take Social Security benefits can be complex and confusing.
If you are approaching age 62, let's discuss your options. We have the tools, knowledge and resources to help you make well informed decisions, maximize your Social Security income and protect your spouse.
Quick Tips: 2014 Social Security Benefits
- Social Security recipients are getting a raise – but not much of one: Next year, the average monthly Social Security payment will increase by $19 due to a 1.5% cost-of-living adjustment, one of the smallest annual COLAs in the program's history. Since 1975, only seven COLAs have been less than 2%. Four of these seven COLAs have occurred in the past five years, however. The 2013 COLA was 1.7%.
- Maximum possible benefit grows: The maximum possible benefit a retiree can claim at full retirement age in 2014 is $2,642, up from $2,533 in 2013.
- The wage base for Social Security is rising: Most workers will pay 6.2 percent of their earnings into the Social Security system until they reach the maximum taxable amount of earnings. The wage cap will increase from $113,700 in 2013 to $117,000 in 2014. About 6 percent of working Americans will pay more Social Security taxes in 2014 as a result of this change.
- So is Social Security's annual earnings limit. This limit is only faced by Social Security recipients who have yet to reach the month in which they turn 66. In 2013, retirees younger than 66 were able to earn up to $15,120 before having $1 in retirement benefits temporarily withheld for every $2 above that level. In 2014, the annual earnings limit rises to $15,480. Social Security recipients who will turn 66 next year can earn up to $41,400 in 2014; if their earnings break through that ceiling, they will have $1 of their benefits temporarily withheld for every $3 above that level. Once you get to the month in which you celebrate your 66th birthday, you can earn any amount of income thereafter without a withholding penalty.
- For more information related to Social Security Changes for 2014, visit the Social Security Administration Website: http://www.ssa.gov/pressoffice/factsheets/colafacts2014.html
Please contact us and let's begin the discussion.