Tuesday, October 18, 2011

2012 Social Security Benefit Increase

Finally!  An increase is coming to
Social Security Benefits.
photo by Wikipedia.com/commons
Good news for recipients of Social Security.  After having gone without any increase in benefits since January, 2009, the Social Security Administration has announced that recipients will receive an increase of approximately 3.6% in January, 2012.  Since the average Social Security payment is $1,082, a 3.6% increase averages out to almost $39 a month.  It will vary, depending on whether you get more or less than the average amount of money.  The increase will apply to both retirees and disabled recipients.

I have a number of friends and neighbors who have been living on a fixed income the past few years.  Several of them are either totally dependent on Social Security, or it makes up a large part of their income.  This increase, although small, will provide them with some help. 

The reason that there has been no increase during the past two years is because the official rate of inflation was considered too small.  Only twice since 1975 have Social Security recipients gone without a Cost of Living Increase ... and that was in the past two years.

It is important to also note that the increase in benefits will be partially lost because Medicare premiums are expected to increase by around $3 to $8, and these premiums are deducted from Social Security payments.

Continue to stay up to date with your retirement planning.  You may be interested in following this blog by email, or reading the articles listed in the sidebars.

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1 comment:

  1. We get a raise and Medicare goes up. I think that's how the term "even steven" originated. :)

    ReplyDelete

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