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.

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.

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