COLA for Social Security Beneficiaries, Federal Retirees Set at 1.7 Percent for 2013

Social Security benefits will increase 1.7 percent in 2013, less than half of this year’s 3.6 percent cost-of-living adjustment, the Social Security Administration announced Oct. 16.

More than 56 million Social Security retirees, dependents, and survivors will receive the increase beginning with benefits payable in January, while more than 8 million Supplemental Security Income recipients will begin receiving the COLA Dec. 31, 2012, SSA said. Some beneficiaries receive payments under both programs.

The 1.7 percent COLA which is based on the rate of inflation over the past 12 months, also will extend to about 1.9 million federal government retirees next ...