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 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 socialsecurity.gov/cola.