In January, 2015 those receiving social security benefits will see an increase of 1.7% in the social security (the increase known as the COLA (cost of living) increase.)
"The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics." To compare this 2015 increase with prior years (COLA): going back five years – In 2010 there was 0% increase in social security ; in 2011 there was 0% increase; in 2012 the increase was a “whopping” 3.6%; in 2013 the increase was 1.7% and in 2014 the increase was 1.5%.
For those individuals who depend solely on social security, those increases would probably not allow one to live a “comfortable’ retirement.
According to the social security administration site: “Some other changes that take effect in January of each year are based on the increase in average wages. Based on that increase, 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.”
For more information specifically about COLA, go to www.socialsecurity.gov/cola