Cost of living up: Social Security benefits increases

America will see an increase of 5.8 percent in their supplemental monthly Social Security benefits next year. This is the largest increase since 1982.

The announcement was made on Thursday by the Social Security Administration. Social Security benefit goes up each year depending on the Consumer Price Index. It is expected that this 5.8 percent increase will benefit about 50 million Americans on Social Security in January 2009. However, another 7 million people that are entitled to Social Security will see this payment increased on New Year’s Eve.

For 2009 the maximum amount of earnings that will be subject to Social Security tax will be $106,800 previously it was $102,000. This will affect around 11 million workers who pay Social Security taxes out of the 164 million that pay.

Source: WSJ