Retirees to get 1.7% bump in Social Security for 2015

By David J. Kupstas, FSA, EA, MSPA

David J. Kupstas, FSA, EA, MSPA

David J. Kupstas, FSA, EA, MSPA Chief Actuary

The Social Security Administration has announced its cost-of-living adjustments for 2015.  Retirees aren’t going to be too thrilled about the 1.7 percent increase in monthly benefits.  This will be the fifth time in six years that the COLA is less than 2.0 percent.  In contrast, for the first 35 years there was an automatic COLA (starting in 1975), the increase was less than 2.0 percent only three times.

The maximum earnings subject to Social Security tax is increasing from $117,000 to $118,500.  If you are one of the lucky 10 million Americans to earn that much, your payroll tax will go up $93 next year.

Here is some good reading about the COLAs and other recent Social Security news:

Social Security benefits may increase 1.7 percent

Social Security benefits will indeed increase 1.7 percent

COLA fact sheet

Should Nazis get Social Security?

— Topics: Retirement, Tax Strategy