Changes for Social Security
• Social Security payments will increase by 1.5% in 2014 due to a Cost of
Living Adjustment (COLA).
• Workers pay 6. 2 percent of their
income into the Social Security system.
• Maximum taxable earnings increases to $117,000 up from $113,700.
• The maximum possible Social Security benefit for a worker who begins
collecting benefits at their full retirement age will be $2,642 in 2014, up
from $2,533 per month in 2013.
• Paper checks ended on March 1,
2013. All recipients will receive payments via direct deposit to a bank or
credit union account or loaded onto a
Direct Express Debit MasterCard.
• When people age 62 to full retirement age (currently 66) receive retirement benefits and continue to work,
they face a limit on what they can earn
before they have to “give back” some of
their benefits. In 2014, workers have to
give back $1 in benefits for every $2 in
earnings above the limit of $15,480.
Pros and Cons of
This is a personal decision, there is
no right or wrong answer. Consider
your life expectancy, spousal benefits
and supplemental income from investments.
As a general rule, early or late retirement will give you about the same
total Social Security benefits over your
lifetime. If you retire early, the monthly
benefit amounts will be smaller to take
into account the longer period you will
receive them. If you retire late, you will
get benefits for a shorter period of time
but the monthly amounts will be larger
to make up for the months when you
did not receive anything.
There are advantages and disadvantages of taking your benefits before full
retirement age. The advantage is that
you collect benefits for a longer period
of time. The disadvantage is your benefit is reduced.
* Remember that, if you delay your
benefits until after full retirement age,
you may be eligible for delayed retirement credits that would increase your
* Keep in mind that there are other
things to consider when making the cor-
rect decision about your retirement ben-
Contact Social Security before you
decide when to retire.
Note: If you decide to delay your
benefits until after age 65, you should
still apply for Medicare benefits within
three months of your 65th birthday. If
you wait longer, your Medicare medical insurance (Part B) and prescription
drug coverage (Part D) may cost you
Social Security Benefits