Social Security Announces 1.7 Percent Benefit Increase for 2013

The following in a press release from the Social Security Administration on the Cost of Living Adjustment (COLA) for 2013. In a nutshell, If you receive Social Security disability benefits, your monthly payment will increase in January of 2013 by 1.7 percent.

If you would like more information on the Cost of Living Adjustment and how it is calculated each year, check out this blog post we published in 2009 on the subject.

SOCIAL SECURITY ADMINISTRATION — Monthly Social Security and Supplemental Security Income (SSI) benefits for nearly 62 million Americans will increase 1.7 percent in 2013, the Social Security Administration announced today.

The 1.7 percent cost-of-living adjustment (COLA) will begin with benefits that more than 56 million Social Security beneficiaries receive in January 2013. Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2012.

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 $113,700 from $110,100. Of the estimated 163 million workers who will pay Social Security taxes in 2013, nearly 10 million will pay higher taxes as a result of the increase in the taxable maximum.