Quick Facts on Social Security’s 1.7% COLA for 2012 The Social Security Administration has just announced that retirement and disability beneficiaries will receive a 1.7% cost-of-living adjustment (COLA) beginning in their January 2013 checks. Social Security benefits are automatically adjusted to keep up with the cost of living.
Key points from Social Security’s release:
- The 2012 COLA will be 1.7%. That compares to a 3.6% increase for 2011 and no increase at all for 2009 or 2010.
- This 1.7% increase will take effect for the December benefits, which are payable in January.
- The COLA calculation is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is produced by the Bureau of Labor Statistics (BLS).
An important point affecting workers:
- The level of taxable maximum earnings for Social Security will increase to $113,700 in 2013, from the current maximum of $110,100 in 2012. About 6 percent of workers will be affected by this increase.