Monthly Social Security and Supplemental Security Income benefits for more than 60 million Americans will increase 3.6 percent in 2012, according to the Social Security Administration.
The 3.6 percent cost-of-living adjustment 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 Dec. 30, 2011.
The maximum amount of earnings subject to the Social Security tax will increase from $106,800 to $110,100 in January. Of the estimated 161 million workers who’ll pay Social Security taxes in 2012, about 10 million will pay higher taxes as a result of the increase in the taxable maximum.
The SSA also said that the increase for some Medicare beneficiaries may be partially or completely offset by increases in Medicare premiums. For more information on 2012 Medicare changes, visit Medicare.gov.