The Social Security Administration (SSA) announced it will provide a 2% increase in benefits next year – the largest cost of living adjustment since 2012.
The increase will affect more than 61 million Social Security recipients, and beneficiaries will start receiving increased payments on Dec. 29, 2017. The average check currently issued to beneficiaries is $1,377 a month and next year the monthly payments will increase by $27 a month.
The SSA bases the increase on the value of inflation known as the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) – a statistic that analyzes how fast costs are rising for American workers.
Several other adjustments take effect in January that are also based on the 2% benefit increase. For example, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $128,700 from $127,200, according to the SSA.
For more information on 2018 Social Security changes, click here or speak with a Smith & Howard professional by calling 404-874-6244.