On Wednesday, October 30th, the Social Security Administration announced that monthly Social Security and Supplementary Security Income (SSI) benefits will increase by 1.5 percent beginning in 2014. This increase affects nearly 63 million Americans.
This change comes as a result of a cost-of-living adjustment (COLA). Increased payments to over 8 million SSI beneficiaries will begin on December 31st, 2013, while the adjustment for more than 57 million Social Security beneficiaries takes effect in January 2014.
Lastly, the maximum amount of earnings subject to the Social Security tax will increase from $113,700 to $117,000. Of the 165 million workers who pay Social Security taxes, it is expected that approximately 10 million will pay higher taxes as a result of this increased taxable maximum.