Recently, the Social Security Administration (SSA) and Centers for Medicare and Medicaid Services (CMS) released their new benefit numbers for 2014. We surveyed this information and created the following quick-glance summary for your reference.
If you’re collecting Social Security
First and foremost, you’ll receive a 1.5% cost-of-living adjustment (COLA) in 2014. While just slightly less than 2013’s 1.7% increase, it’s an increase nonetheless.
Also of benefit, if you’re still working, earning exemption thresholds have increased slightly, so you’ll benefit from being able to pocket some additional income:
- If you’re under the full retirement age of 66, the annual retirement earnings test exemption becomes $15,480, compared to $15,120 in 2013 (an increase of $360)
…keep in mind though that for anything you earn in excess of $15,480, $1 in benefits will be withheld for every $2 in earnings above this amount
- If you reach full retirement age 66 in 2014, the annual retirement earnings test exemption amount is $41,400, up from $40,080 in 2013 (an increase of $600)
…again, take note of the fact that for any amount you earn above $41,400, $1 in benefits will be withheld for every $3 in earnings beyond the threshold
If you’re not collecting Social Security yet
Some earnings thresholds have increased – albeit slightly (as inflation adjustments and to help maintain the sustainability of the Social Security system) – as follows:
- Your taxable earnings subject to the Social Security tax will increase to $117,000, compared to $113,700 in 2013
- The amount of earnings needed to receive one Social Security credit will increase to $1,200, compared to $1,160 in 2013
If you’re on Medicare
Some numbers remain unchanged – helpful for budget planning. In 2014, the Medicare Part B deductible will continue to be $147.00 and for many, the standard monthly Medicare Part B premium will remain at $104.90.
However, if you’re an individual with taxable income of more than $85,000, or married with taxable joint incomes of more than $170,000, you’ll pay more than $104.90 per month for your Part B premium due to an income-related surcharge.
Other numbers have gone up. Although minimal, there will be increased fees when you receive care:
- For in-patient hospitalization
- Your Medicare Part A deductible will be $1,216, up from $1,184 in 2013
- You’ll pay an additional daily co-insurance amount of $304 for days 61 through 90, compared to $296 in 2013
- For stays beyond 90 days, you daily amount will be $608, compared to $592 in 2013
- For skilled nursing facility care, you’ll pay a daily co-insurance amount of $152 for days 21 through 100 in a benefit period, an increase from $148 in 2013
Sources: Social Security Administration (SSA), Centers for Medicare & Medicaid Services (CMS), Broadridge/Forefield.