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Monday, October 24, 2011

2012 Social Security Cost-of-Living Adjustments

On October 19, the Social Security Administration (SSA) released the 2012 inflation adjustments. Seniors will receive a 3.6% cost of living increase (part of which will be reduced by Medicare Part B premium increases not allowed during 2010 and 2011). Currently employed individuals will pay Social Security taxes on the first $110,100 of earnings (up from $106,800). Workers under full retirement age drawing Social Security benefits can earn up to $14,640 per month without losing benefits (up from $14,160). Individuals receiving disability benefits must be unable to earn $1,010 per month (up $10 from $1,000.)

All of the inflation adjustments, including estimated average benefits in 2012, can be found by visiting the Social Security Fact Sheet.

Information provided by Frank Vidin, CFP, CSA, financial and non-profit consultant and CSA faculty member.