SS will receive a 1.7 increase in benefits [View all]
WASHINGTON (AP) — More than 56 million Americans on Social Security will get raises averaging $19 a month come January, one of the smallest hikes since automatic adjustments for inflation were adopted in 1975, the government announced Tuesday.
Much of the 1.7 percent increase in benefits could get wiped out by higher Medicare premiums, which are deducted from Social Security payments.
At the same time, about 10 million working people who make more than $110,100 will be hit with a tax increase next year because more of their wages will be subjected to Social Security taxes.
The cost-of-living adjustment, or COLA, on payments is tied to a government measure of inflation released Tuesday. It confirms that inflation has been relatively low over the past year, despite the recent surge in gasoline prices.