Social Security Announces 3.6 Percent Benefit Increase

The Social Security Administration announced on Wedensday that benefits for more than 60 million Americans will increase 3.6 percent in 2012. 

The increase affects monthly Supplemental Security Income (SSI) benefits. 

The 3.6 percent cost-of-living adjustment will affect benefits that nearly 55 million beneficiaries receive in January 2012.  Increased payments to more than 8 million SSI beneficiaries will begin on Dec. 30, 2011.

In January the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $110,100 from $106,800, resulting in higher taxes for about 10 million workers. 

Information about Medicare changes for 2012, when announced, will be available here.