In January, 2012, people who are on Social Security will get their first raise since 2009 and will be around three point five percent. On Wednesday, the amount of the raise will be determined because that is when the annual cost-of-living adjustment will be released. Since 1970, Social Security benefits have increased each year an average of four point two percent. In 2010 and 2011 there was no cost-of-living adjustments because the inflation was too low.
Unfortunately, there is a drawback to getting any type of raise in your Social Security benefits. Many people will see some of the raise lost when the Medicare premiums will be higher. These premiums are deducted from what people get in Social Security payments. The amount of the 2012 premiums will be announced sometime next week.
The raises in Social Security payments depend on consumer prices. If they increase from year to year then the payments get higher starting with the first month of the New Year. On the other hand, if the changes are negative, then there is no raise for the next year. Since 1975, there have only been two years without a raise.
If a person were receiving on the average one thousand eighty-two dollars and with a three point five increase, they would get an extra thirty-eight dollars a month. This does not sound like a lot of money but for some people it is a lot of money.