Bigger payments – To keep up with inflation, social security payments are automatically adjusted every year. For 2015, concerned parties can expect a 1.7 percent cost-of-living adjustment, with a typical retiree slated to receive about $22 more per month. This adjustment will also increase the average monthly payout for retirees from $1,306 to $1,328. On the other hand, retired couples who receive benefits individually can expect to get $36 more on their average payouts.
New 401(k) limit – For 2015, concerned parties can expect a $500 increase to the 401(k) contribution limit. Workers 50 years and older also face an increase to their catch-up contribution limits amounting to $500. One can also look to maximize a significant amount of tax deferral on such policy change—i.e. a beneficiary under 50 years of age who’s in the 25 percent tax bracket and shells a maximum contribution amount can save up to $4,500 on his/her federal income tax bill.