Income

Changes in Retiree Social Security Benefits for 2014 Social Security

Each fall, Social Security announces changes to its benefits for the following year. Here is a summary of some of the biggest changes for 2014.

  • Slightly bigger monthly payments: Social Security payments will increase by 1.5 percent in 2014. The average check is expected to increase by $19, from $1,275 to $1,294. Couples' benefit payments will grow from an average of $2,080 to $2,111. Payments are adjusted each year to reflect inflation as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers. Previous adjustments have ranged from zero in 2010 and 2011 to 14.3 percent in 1980.
  • Increased earnings limit: If you work, collect Social Security benefits, and are younger than your full retirement age (66 for those born between 1943 and 1954), you can earn up to $15,480 in 2014, after which $1 of every $2 earned will be temporarily withheld from your Social Security payment. If you turn 66 in 2014, the limit will be $41,400, after which $1 of every $3 earned will be withheld. At your full retirement age you can earn any amount and collect your full Social Security benefits. 

Other changes to Social Security

  • In 2014, the maximum possible monthly Social Security benefit if you begin collecting benefits at your full retirement age will be $2,642, up from $2,533 in 2013.
  • The maximum amount of earnings subject to Social Security taxes will be $117,000 in 2014, up from $113,700 in 2013.

Source: Social Security Administration. The Official Website of the U.S. Social Security Administration, http://ssa.gov.