The raise is expected to be 3.5%. Weâll find out for sure Wednesday.
Some of the increase in January will be lost to higher Medicare premiums, which are deducted from Social Security payments. Medicare Part B premiums for 2012 are expected to be announced next week, and the trustees who oversee the program are projecting an increase.
Monthly Social Security payments average $1,082, or about $13,000 a year. A 3.5% increase would amount to an additional $38 a month, or about $455 a year.
Most retirees rely on Social Security for more than 90% of their income.
The COLA was enacted in the 1970âs (before the Tea Party and the current GOP craziness.