Social Security Benefits to Go Up by 1.5%
The Social Security Administration recently announced the Cost-of-Living Adjustment (COLA) for 2014. COLA is based on a government measure of inflation. And consumer prices haven't gone up much this year.
Since 1975, annual Social Security raises have averaged just over 4 percent. Next year will mark only the seventh time the COLA has been less than 2 percent, including several recent ones. This year's increase was 1.7 percent. There was no COLA in 2010 or 2011 because inflation was too low.
According to ssa.gov, “Monthly Social Security and Supplemental Security Income (SSI) benefits for nearly 63 million Americans will increase 1.5 percent in 2014. The 1.5 percent cost-of-living adjustment (COLA) will begin with benefits that more than 57 million Social Security beneficiaries receive in January 2014. Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2013.”
Medicare part B premiums for 2014 will remain unchanged at $104.90 monthly.
You must start including the 1.5 percent increase in your income calculations starting January 2014. You can add the 1.5 percent COLA by multiplying the current award amount by 1.015.