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Job Seekers Employers |
Social Security Benefits to Rise 3.6%POSTED October 19, 2011 WASHINGTON -- There's good news for senior citizens and the disabled. The Social Security Administration announced benefits will increase by 3.6% as part of a cost-of-living adjustment. The 3.6 percent cost-of-living adjustment (COLA) will begin with benefits that nearly 55 million Social Security beneficiaries receive in January 2012. Increased payments to more than 8 million SSI beneficiaries will begin on December 30, 2011. The average monthly benefits for all retired workers will increase from $1,186 per month to $1,229 per month with the 3.6% COLA increase. The average amount for disabled workers will rise from $1,072 to $1,111 per month. This is the first increase in COLA for Social Security since 2009 when there was a 5.8% increase. There was no raise in 2010 and 2011. 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 $110,100 from $106,800. Of the estimated 161 million workers who will pay Social Security taxes in 2012, about 10 million will pay higher taxes as a result of the increase in the taxable maximum. Information about Medicare changes for 2012, when announced, will be available at www.Medicare.gov. For some beneficiaries, their Social Security increase may be partially or completely offset by increases in Medicare premiums. The Social Security Act provides for how the COLA is calculated. To read more, please visit www.socialsecurity.gov/cola. In 2011, nearly 55 million Americans will receive $727 billion in Social Security benefits. Social Security is the major source of income for most of the elderly. Nine of ten Americans age 65 and older receive Social Security. An estimated 158 million workers, 94% of all workers, are covered under Social Security. |
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