Since 1975, Social Security has provided for a Cost of Living Adjustment (COLA) for Social Security Beneficiaries. After seeing no increase in Social Security benefits for 2 straight years in 2010 and 2011, we have now seen a cost of living increase in benefits for the last 3 years.
Starting next year, Social Security Benefits are going to increase again. As we discussed earlier, this increase is tied to the Consumer Price Index for Workers (CPI-W). For 2014, benefits will increase by 1.5% over their 2013 levels. Additionally, the amount of earnings needed to receive all 4 of your Quarters of Coverage will go up to $4,800. Maximum payments for Supplemental Security Income (SSI) will increase to $721/month. The increase will also affect earnings amounts for your Trial Work Period, as well as what amount Social Security considers to be Substantial Gainful Activity. Social Security has posted a list of the 2014 increases based on the COLA here.
If you have any questions about your benefits, or you are currently applying for disability and have questions, contact us.