Social Security Cost of Living Increase Announced

After two years without a cost-of-living adjustment (COLA), Social Security has announced that recipients will receive a 3.6% increase in their checks beginning in January of 2012. In January of 2009, recipients received a 5.8% increase (an uncommonly large adjustment) but did not see any adjustments in 2010 or 2011. In each of those years the rate of inflation was too low to trigger a COLA. Since an increase in Medicare Part B premiums cannot lower a Medicare beneficiary's Social Security amount, there has also been a corresponding postponement in the increase of Part B premiums for existing Medicare beneficiaries. The Centers of Medicare and Medicaid Services (CMS) has not yet released the Medicare Part B premiums for 2012.

For more information see the Social Security announcement by clicking here.