Social Security Administration Announces 2012 COLA

For retirees and workers, there's good news, not-so-good news, and in-between news. Let's start with on a positive note:

The Social Security Administration today announced the first cost of living increase in the past three years. If you're one of the 55 million Americans currently collecting Social Security, you'll get a 3.6% increase beginning in 2012. For the average retiree, this represents an increase of about $43 more per month.

What will you do with the extra dollars? Probably spend it on Medicare premiums, which are expected to increase next year. Look for the announcement next month.

It's potentially a mixed bag for working people, too. Next year, the maximum salary that subject to Social Security tax will rise to $110,100, up from today's $106,800.day. The government anticipates that this will impact about 10 million wage earners. Also,  the 4.2% in Social Security taxes workers are currently paying as a result of last year's budget bill, is scheduled to return to 6.2% next year. The Obama Administration wants to further cut Social Security Tax to 3.1% in 2012, but whether that will happen, particularly as we go into an election year, is anyone's guess.

Attorney Joseph S. Karp is a Florida Bar Certified and Nationally Certified Elder Law Attorney focusing on Elder Law, Probate, Estate Planning, Asset Protection, Special Needs Planning and Estate Litigation. He is AV rated by Martindale Hubbell. Mr. Karp is the founder of The Karp Law Firm, a South Florida law firm with offices in Palm Beach Gardens, Boynton Beach and St. Lucie, Florida.  Mr. Karp was named a 2011 SuperLawyer by SuperLawyer Magazine and a member of the 2011 Florida Legal Elite by Florida Trend Magazine. He is admitted to practice law in New York as well as Florida. Visit Mr. Karp's Florida Elder Law and Estate Planning website. 

. . . .

Explore the LEXIS.com Estates, Gifts & Trusts and Elder Law resources

Discover the features and benefits of LexisNexis® Tax Center

For more information about LexisNexis products and solutions connect with us through our corporate site.