Recently the Social Security Administration released the updated figures for 2014, including the wage base, earnings limits, and the increase to benefits.
For 2014, the wage base for Social Security will rise to $117,000. This is the maximum amount of W2 wages that are subject to the 6.2% employer- and employee-paid Social Security tax. This amount represents an increase of $3,300 over the wage base of $113,700 in 2013.
In addition to that increase, benefits to eligible recipients of Social Security retirement will increase by 1.5% in 2014. This is slightly less than the 1.7% increase to benefits in 2013. This brings the average monthly benefit for all retired workers up by $19, to$1,294 in 2014. For the average couple who are both receiving Social Security benefits, the COLA increase is $31 per month, for an average benefit of $2,111 in 2014.
Likewise, there was an increase announced to the earnings limits for Social Security benefits. When receiving Social Security benefits at during ages 62 through 65, you are allowed to earn up to $15,480 in 2014 before having to forfeit a portion of those Social Security benefits. This is an increase of $360 over the limit of $15,120 for 2013. For every $2 over the earnings limit, the beneficiary forfeits $1 of Social Security benefits.
In the year that the beneficiary will reach age 66 (but before his or her 66th birthday) the earnings limit for 2014 is increased to $41,400 (up from $40,080 in 2013). For every $3 earned above that limit, $1 is withheld from your benefits until you reach age 66. After age 66 there is no earnings limit.