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.

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