On October 22, 2014, the Social Security Administration announced that a cost of living adjustment of 1.7% will go into effect on January 1, 2015.

The increase will apply to disability insurance benefits and supplemental security income (SSI) as well as retirement benefits.

The monthly maximum SSI benefit for an individual will increase from $721 in 2014 to $733 in 2015.

Another notable change on January 1, 2015, is an increase in the maximum amount of earnings subject to the Social Security tax from $117,000 to $118,500.

The Social Security tax rate is current 6.2%. Taxes for Social Security are part of FICA taxes deducted from each paycheck. Note: employees pay 6.2% and employers pay an additional 6.2%, for a total of 12.4%; self-employed individuals pay the entire 12.4%.