The Social Security Administration has announced that monthly Social Security and Supplemental Security Income (SSI) benefits for more than 60 million Americans will increase 3.6 percent in 2012.
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 COLA is usually determined
by comparing the third-quarter consumer price index with the previous year’s
third quarter. However, this year the comparison will be with the third quarter
of 2008. Monthly Social Security
and Supplemental Security Income (SSI) benefits did not automatically increase
in 2010 or 2011 since there was no increase in the Consumer Price Index from
the third quarter of 2008, the last year a COLA was determined. See the social Security Information Fact
Sheet at http://www.ssa.gov/pressoffice/factsheets/colafacts2011.pdf.
Unfortunately,
the benefits of the COLA increase in 2012 may be offset by an increase in Medicare
premiums.
More Information:
AARP Bulletin: Social
Security COLA Increase Likely
Washington Post: Federal retirees to get COLA increase
Washington Post: Not so fast — higher Medicare premiums could erase part of Social Security increase
Washington Post: Federal retirees to get COLA increase
Washington Post: Not so fast — higher Medicare premiums could erase part of Social Security increase
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