Tax Advice Santa Rosa – SOCIAL SECURITY IN 2014

November 14th, 2013 → 6:00 pm @ // No Comments

Next year’s small COLA isn’t the only adjustment related to the program.

Here are six things you need to know about Social Security for 2014. For clarity’s sake, here is a rundown of what is changing next year, and what isn’t.

Social Security recipients are getting a raise – but not much of one. Next year, the average monthly Social Security payment will increase by $19 due to a 1.5% cost-of-living adjustment, one of the smallest annual COLAs in the program’s history. Since 1975, only seven COLAs have been less than 2%. Four of these seven COLAs have occurred in the past five years, however. The 2013 COLA was 1.7%.

How does Social Security measure COLAs? It refers to the federal government’s Consumer Price Index, specifically the CPI-W, which tracks how inflation affects urban wage earners and clerical workers. Social Security looks at the CPI-W from July to September of the present year to figure the Social Security COLA for next year, so the 2014 COLA reflects the very tame inflation measured in summer 2013.

Does the CPI-W accurately measure the inflation pressures that seniors face? Some senior advocacy groups say it doesn’t. The Senior Citizens League, a non-profit that lobbies for …Read More


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