Monthly Social Security Benefit Amounts to Increase by 1.7 Percent
Posted On Behalf of Schmidt Kramer Injury Lawyers on Nov 05, 2012 in Social Security Disability
The Harrisburg Social Security Disability attorneys at Schmidt Kramer regularly help disabled workers appeal rejected disability benefit applications. They know how important those benefits are to someone who is disabled and unable to work.
In addition to providing monthly benefits to disabled workers, Social Security provides monthly benefits to retired workers, spouses, widows, widowers and children.
On October 16, 2012, the Social Security Administration announced that more than 56 million Social Security and Supplemental Security Income (SSI) recipients would receive a 1.7 percent increase in their monthly benefit next year.
The annual benefit increase, known as a cost-of-living adjustment (COLA), is tied to inflation. It is determined by comparing the average price index for July, August, and September to the same months in the previous year. If the consumer price index increases, Social Security and SSI recipients get higher monthly benefit amounts starting in January of the following year. If the consumer price index drops, benefit amounts remain the same.
Although gas prices have increased recently, overall inflation has been relatively low. The result is in one of the smallest increases in Social Security benefit payments since 1975.
Retired workers, on average, receive a monthly benefit of $1,237, or $14,800 per year. These workers will see their monthly benefit amount increase by about $21 per month.
Taxes paid by workers and employers to fund Social Security benefits will also go up next year. Currently, workers pay 4.2 percent and employers pay 6.2 percent of the first $110,100 in wages. Next year, both workers and employers will pay 6.2 percent of the first $113,700 in wages. The increase in the Social Security tax rate for workers is due to the expiration of a temporary tax cut enacted for 2010 and 2011.
Social Security Disability benefits are crucial for those who are disabled and unable to work. If you are disabled and the Social Security Administration has denied your disability benefit application, contact a Harrisburg Social Security Disability lawyer at (888) 476-0807 for a free consultation.