How Much of the 3.6% COLA Increase Will the Average Social Security Recipient Receive?
A Cost of Living Adjustment (COLA) increase of 3.6% was announced last week after the 3rd quarter Consumer Price Index –W came out. This increase in social security payments has the potential to effect more than 50 million people. The new amount will be reflected in the first checks for 2012 due out in January.
Many speculate though that most will not see much of an increase if any as it is expected that the medical premiums that have not had an increase in the last 2 years will also increase eating away at the extra income. As there was no COLA for the last 2 years there was also no increase in the medical premiums. Now, due to inflation there is going to be an adjustment made for social security so it is presumed that there will also be an increase in the Medicare premiums.
Many seniors are having a hard time trying to live on a fixed income in this difficult economy. It is not easy to rely only on social security payments and pensions. It is just not enough. Many are continuing to work and holding off on full retirement.
There are about 160 million workers that will be paying into the social security administration and supporting the more than 50 million retirees. The maximum salary limits were also raised last week to $110,100. This means that taxes are due on up to this amount of income.
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