More than 56 million Social Security recipients will see their monthly payments increase by 1.7% in January… The increase is among the lowest since automatic annual adjustments were adopted in 1975.
Did you know your Social Security payout increase will be the lowest ever at 1.7%? It’s true, according to official confirmation on October 16.
The COLA is the Cost Of Living Adjustment added to Social Security annually, based on inflation and increases in the Consumer Price Index (CPI.) For some seniors, planning for the new year means planning around the COLA and hoping for the best. Alternatively, a reduction or a weak increase in COLA may mean seniors will need to make up the difference out of savings. Nevertheless, the CPI is an imperfect indicator and a debated one as well.
This matter was taken up recently by USA Today in an article titled “Social Security benefits to rise 1.7% in 2013.”
Well, if you are on Social Security, what does this mean to you? Likely it means a great deal, especially if the tax picture changes next year. What about that payroll tax cut that’s set to expire? To bone up on what may be coming down the pike you might want to review a recent Forbes article titled “Social Security Benefits To Rise 1.7%; Workers Face Up To $2425 Payroll Tax Hike.”
References: USA Today (October 16, 2012) “Social Security benefits to rise 1.7% in 2013”Forbes (October 16, 2012) “Social Security Benefits To Rise 1.7%; Workers Face Up To $2425 Payroll Tax Hike.”