2013 Social Security cost-of-living adjustment will be 1.7%

 

The Social Security Administration (SSA) has announced a 1.7 percent cost-of-living-adjustment (COLA) for Social Security benefits received by beneficiaries starting in January 2013. This COLA will produce an estimated average monthly benefit of $1,261 for all retired workers in 2013, $21 a month more than in 2012. The COLA increase will be applied to this coming year’s benefits, beginning with benefits for December 2012, which are payable in January 2013. The increase will begin for more than 56 million Social Security beneficiaries with benefits that are received in January 2013. Increased payments for more than 8 million SSI beneficiaries will begin on December 31, 2012.

The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $113,700 for 2013, up from $110,100 for 2012. 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.

Source: Social Security News Release and Fact Sheet.

For more information, visit http://www.wolterskluwerlb.com/rbcs.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer’s Benefits Reports.

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