Social Security benefits to go up by 1.7% in 2013

More than 56 million Social Security recipients will see their monthly payments go up by 1.7% next year. The increase, which is effective on Jan. 1, is tied to a measure of inflation released today. It shows that inflation has been relatively low over the past year, resulting in one of the smallest increases in Social Security payments since automatic adjustments were adopted in 1975. This year, Social Security recipients received a 3.6% increase in benefits after getting none the previous two years. About 8 million people who receive Supplemental Security Income will also receive the cost-of-living adjustment, or COLA, meaning the announcement will affect about 1 in 5 U.S. residents. Social Security payments for retired workers average $1,237 a month, or about $14,800 a year. A 1.7% increase will amount to about $21 a month, or $252 a year, on average. Social Security also provides benefits to millions of disabled workers, spouses, widows, widowers and children. The amount of wages subjected to Social Security taxes is going up, too. Read the full story here for complete details.