There are some changes you can expect for Social Security next year:
Cost of Living Allowance (COLA)
As we reported yesterday, the COLA in 2015 is 1.7%. This means those receiving Social Security will get a 1.7% increase in their payments beginning in January. This increase is expected to give the average retiree an extra $22 per month.
Most workers pay 6.2% of every paycheck into Social Security until their earnings exceed the tax cap. The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $118,500 from $117,000. Of the estimated 168 million workers who will pay Social Security taxes in 2015, about 10 million will pay higher taxes because of the increase in the taxable maximum.
Greater Earnings Limits
Social Security beneficiaries who are under age 66 can earn up to $15,720 in 2015 before $1 in benefits will be withheld for every $2 earned above the limit. Retirees who will turn 66 in 2015 and have signed up for Social Security can earn up to $41,880 before every $3 earned above the limit will result in $1 in benefits being withheld. However, once a retiree turns 66 there is no limit on earnings and Social Security payments are recalculated to give the retiree credit for the withheld benefits.
The Social Security Administration has said that it will begin mailing some paper statements. Workers attaining ages 25, 30, 35, 40, 45, 50, 55, and 60 who are not receiving Social Security benefits and who are not registered for a my Social Security account will receive the statement in the mail about 3 months before their birthday. After age 60, people will receive a statement every year. SSA expects to send nearly 48 million statements each year.