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Social Security in 2014

After announcing that benefits will increase 1.5% for 2014, the Social Security Administration provided some other information that may be of interest.

Benefits. The average benefit payable to retired workers is an estimated $1,294 a month (as of January 2014). Retired couples who both receive benefits get $2,111 on average. The maximum benefit for a worker retiring at full retirement age (FRA) is $2,642 a month.

Taxes. The 6.2% Social Security payroll tax applies to the first $117,000 of 2014 earnings. Self-employed individuals pay 12.4% on the first $117,000 of earnings.

Retirement earnings. Social Security recipients who haven’t reached FRA generally can earn as much as $15,480 this year before their benefits will be reduced ($41,400 if reaching FRA in 2014).

Original content provided by: Client Line Newsletter