The increase is among the lowest since
automatic annual adjustments were adopted in 1975. It reflects relatively low
inflation over the past year.
At a mere 1.7%, Social Security
will see its lowest increase ever come 2013. What does this mean for seniors
The COLA is the Cost Of Living Adjustment added to Social Security annually,
based on inflation and increases in the Consumer Price Index (CPI.) For some
seniors, planning for the new year means planning around the COLA and hoping
for the best. Alternatively, a reduction or a weak increase in COLA may mean
seniors will need to make up the difference out of savings. Nevertheless, the
CPI is an imperfect indicator and a debated one as well.
In conjunction with the small
Social Security increase and the uncertainty of taxes for next year, you may
want to brush up on what could happen in 2013.
A recent Forbes article titled
“Social Security Benefits To Rise 1.7%; Workers
Face Up To $2425 Payroll Tax Hike” may offer some knowledge on these very
important changes. Seek appropriate counsel if you have further questions about