American seniors who receive Social Security payments will receive a cost of living adjustment (COLA) of 3.6 percent in 2012, according to the U.S. Social Security Administration.
It will be the first increase in monthly payments since 2009. Payments did not rise the last two years because inflation, as measured by the government, remained low.
The 3.6 percent 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.
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.
Faye-Linda Quimby McGovern (Wed, 19 Oct 2011 21:53:26 +0000): Well, it's about time! I certainly disagree with the statement "Payments did not rise the last two years because inflation, as measured by the government, remained low." What the government calls inflation and what the people call inflation is two different things altogether. I don't agree that it remained low. People have been robbed of healthcare, RXs, and other things because of Wall Street. THEY are the ones who determine inflation. As long as the rich run this country, the poor people will remain poor. I believe the rich are trying to eliminate the poor, just as Hitler did the Jewish people. The people will rebel eventually. Hopefully it will not be too late.
Romaine Williams (Wed, 19 Oct 2011 22:17:49 +0000): I agree with you Faye, Ii couldn't express it any better, there is rebellion on Wall street, the OWS, this is just the tip of the iceberg.
Nikki Christensen (Thu, 20 Oct 2011 00:27:15 +0000): When we get a raise, our Medicare goes up just about that much so I don't get too excited.
Bob Wilson (Thu, 20 Oct 2011 05:07:27 +0000): The State of California JUST DECREASED the allowable cost for In Home Social Services by 3.6% effective now! WHAT A COINCIDENCE? What the Feds give, the state takes away!