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Social Security Announces 0.3 Percent Benefit Increase for
2017
Monthly Social Security and Supplemental Security Income
(SSI) benefits for more than 65 million Americans will
increase 0.3 percent in 2017, the Social Security
Administration announced today.
The 0.3 percent cost-of-living adjustment (COLA) will begin
with benefits payable to more than 60 million Social
Security beneficiaries in January 2017. Increased payments
to more than 8 million SSI beneficiaries will begin on
December 30, 2016. The Social Security Act ties the annual
COLA to the increase in the Consumer Price Index as
determined by the Department of Labor’s Bureau of Labor
Statistics.
Some other adjustments that take effect in January of each
year are based on the increase in average wages. Based on
that increase, the maximum amount of earnings subject to the
Social Security tax (taxable maximum) will increase to
$127,200 from $118,500. Of the estimated 173 million
workers who will pay Social Security taxes in 2017, about 12
million will pay more because of the increase in the taxable
maximum.
Information about Medicare changes for 2017, when announced,
will be available at
www.Medicare.gov.
For some beneficiaries, their Social Security increase may
be partially or completely offset by increases in Medicare
premiums.
The Social Security Act provides for how the COLA is
calculated. To read more, please visit
www.socialsecurity.gov/cola.
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