Social Security recipients will see a 0.3 percent cost of living increase in their benefits for 2017, the Social Security Administration announced Tuesday.
The increase was based on the inflation information published by the Labor Department Tuesday, and will take effect for beneficiaries in December and January.
The increase will translate to a few dollars per beneficiary each month. Because inflation was low, beneficiaries did not see a cost-of-living allowance for 2016.
In addition to raising benefits, the Social Security Administration is raising the limit on taxable wages. Starting in January, Social Security taxes will apply to the first $127,200 in earnings, up from $118,500 this year. As a result, the administration said, about 12 million workers will pay more in taxes.
For some seniors, the small increase they will see in their Social Security checks is likely to be offset by rising Medicare premiums, which are set through a complicated formula that takes into account cost-of-living increases in retirement benefits.
Sen. Bernie Sanders, I-Vt., immediately declared the formulaic increase in benefits too small. “Seniors and disabled veterans deserve a fair cost-of-living adjustment to keep up with the skyrocketing cost of prescription drugs and health care,” said Sanders, who proposed expanding benefits during his run for the Democratic nomination for president. “Unfortunately, the increase announced today doesn’t come close to doing that.”
