Early last week, the Social Security Administration reported that Social Security recipients will see their benefits increase 3.6 percent in 2012, the first boost in two years, following a period of low inflation. The increase is likely to affect approximately 55 million recipients. Currently, the average monthly benefit is $1,082, and a 3.6 percent increase would mean $39 more in benefits each month, or an additional $468 per year. Along with the increase in benefits, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $110,100 from $106,800. Of the estimated 161 million workers who will pay Social Security taxes in 2012, about 10 million will pay higher taxes as a result of the increase in the taxable maximum.

Link: Press Release