Social Security recipients to see 2 percent cost-of-living increase

Social Security beneficiaries will receive a 2 percent cost-of-living payment increase next year, the agency announced Friday. The increase is based on rising wages and prices, and is the highest since 2012. Benefits rose less than half a percent this year, and didn’t rise at all in 2016, because inflation was stagnant. The agency also said the threshold cap for paying Social Security taxes on income will rise, from $127,200 to $128,700. Because Social Security is supposed to be a pension-style program, with the maximum payout capped, the maximum amount of taxes paid is also limited. AARP, the lobby group for seniors, said the benefits hike was “some relief,” but complained that the increase wasn’t enough. “For the tens of millions of families who depend on Social Security for all or most of their retirement income, this cost of living increase may not adequately cover expenses that rise faster than inflation including prescription drug, utility and housing costs,” the organization said.

Probably not..

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