Monthly Social Security and Supplemental Security Income (SSI) benefits will increase 1.7 percent in 2013, the Social Security Administration has announced.The 1.7 percent cost-of-living adjustment (COLA) will begin with benefits that Social Security beneficiaries receive in January 2013, while increased payments to SSI beneficiaries will begin on December 31, 2012.
Certain 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 will increase to $113,700 from $110,100. (Note also that the Social Security payroll tax cut, in effect since 2011, is set to expire under current law at the end of December 2012.)
For More Information
A fact sheet is available showing the effects of the various automatic adjustments. You can also review additional information regarding how the COLA is calculated.