Important News - Social Security Benefit Increase for 2013
The Social Security Administration (SSA) announced today that it is increasing benefits for Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) for nearly 62 million Americans. They are expecting to increase benefits by 1.7%.
The 1.7% cost-of-living adjustment (COLA) will be applied to more than 8 million SSI beneficiaries beginning on December 31, 2012, and more than 56 million SSDI beneficiaries starting in January of 2013.
Other changes that take affect in January is an increase in the maximum amount of earnings subject to the Social Security tax. Starting January, individuals earning up to $113,700 annually will be subject to the Social Security tax. This is up from $110,100. Of the estimated 163 million workers who pay Social Security taxes, this increase of the taxable maximum will result in higher Social Security taxes for 10 million individuals, and will help fund the increase in Social Security benefits.
There will be additional changes for Medicare in 2013, and will be available at the Medicare Website when they are announced. For some beneficiaries, the increase in Social Security benefits may be partially or completely offset by increases in Medicare premiums.
For additional information on how the Social Security Administration calculates cost-of-living adjustments, please visit their website.
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Articles contained here are not intended to provide legal advice, only providing general information. We encourage individuals to consult with an attorney regarding individual circumstances.