A celebration is in order! If you are currently collecting Social Security then the good news is that you will see your benefits increase beginning in January. The 1.3 percent cost-of-living adjustment (COLA) isn’t huge, but it does mean the average retired worker will receive an extra $20 each month or $33 for retired couples.
If you worry that increases in Medicare premiums will wipe out those increases in monthly benefits (because the government automatically deducts these premiums from your Social Security checks), worry not! The new Medicare premium will be less than projected, thus preserving most people’s COLA.
For those who are still paying into Social Security, the percentage taken from your paycheck won’t change. However, you now have to make $142,800 before you no longer have to pay the payroll tax.
It will cost more for workers to accrue the necessary 40 credits to qualify for Social Security. Workers must earn sixty dollars more per credit to be eligible for benefits. Also, for those who collect Social Security before full retirement but continue to work, there will be an increase in the amount withheld.