Social Security Benefits to Rise 0.3% in 2017


The Social Security Administration announced that benefits will increase 0.3 percent in 2017.

The increase is a cost of living adjustment tied to an increase in the Department of Labor’s Consumer Price Index, and will raise the average monthly Social Security benefit by about $4, to about $1,360, according to the SSA.

The increase will affect approximately 8 million Social Security beneficiaries on Dec. 30, 2016, and a further 60 million in January 2017.

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However, the SSA did note that the maximum amount of earnings subject to the Social Security tax will rise to $127,000, from its current $118,500. It expects that about 12 million people will pay more because of the increase.

Comments (3)
The relationship between Social Security benefit increases and Medicare premium increases is a classic example of political duplicity.

For the 70% of Medicare beneficiaries who choose to pay their Medicare premiums via deductions from their Social Security benefits, the DOLLAR amount of premium increase is limited to the DOLLAR amount of Social Security benefit increase. In other words, the politicians have ensured that, for these people, their monthly Social Security benefits will not decrease. Obviously, they don't want to hear from constituents complaining about a "benefit reduction."

For the other 30% of Medicare beneficiaries who either:
1. Are not currently claiming Social Security; or,
2. Choose to pay their Medicare premiums by means other than having them deducted from their Social Security benefits,
their Medicare premiums will soar.

For 2016, they were scheduled to increase by more than 50%. Miraculously, Congress somehow "found the money" to limit the increase to about 20%.

Ask your Congressclowns why Medicare premiums should be based on the method of payment that the beneficiary chooses.
Posted by ArizonaCPA | Thursday, October 20 2016 at 2:33PM ET
My understanding (and correct me if I am wrong, please)is that the PERCENTAGE increase in Medicare premium cannot exceed the COLA.
Posted by jdbalso | Thursday, October 20 2016 at 12:56PM ET
Yea real big deal. The benefit rise by a couple of dollars and the monthly medicare premium rises by 25 dollars. Seniors are a real winner!!!!!! It is amazing how the government figures its COLA when paying benefits but the real cost of living seems to go up double digits on healthcare, food, fuel and other things that are required in daily lives. Just goes to show that figures do not lie but liars figure.
Posted by peterpan | Thursday, October 20 2016 at 10:22AM ET
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