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
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