|Monthly Social Security and Supplemental Security Income benefits for nearly 62 million Americans will increase 1.7 percent in 2013, according to today's announcement by the Social Security Administration. However, don't applaud too loudly (although considering the percentage increase in the cost of living versus this increase, you probably aren't applauding too loudly if a recipient anyway).
Why? The government spokesperson says that for some (he probably means more than "some") beneficiaries of Medicare, Social Security may (he probably means more than "may") be partially or completely offset by increases in Medicare premiums.
Some other changes 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 $113,700 from $110,100. Of the estimated 163 million workers who will pay Social Security taxes in 2013, nearly 10 million will pay higher taxes as a result of the increase in the taxable maximum.