Social Security Announces 3.3 Percent Benefit Increase

More than 53 million Americans will receive a 3.3 percent increase in their monthly Social Security and Supplemental Security Income benefits in 2007, according to the Social Security Administration.

The 3.3 percent Cost-of-Living Adjustment (COLA) will begin with benefits sent to nearly 49 million Social Security beneficiaries in January 2007. Increased payments to more than 7 million Supplemental Security Income beneficiaries will begin on December 29, 2006.

In addition, the maximum amount of earnings subject to the Social Security tax will increase from $94,200 to $97,500. Social Security estimates that about 11 million of the approximately 163 million workers who will pay Social Security taxes in 2007 will pay higher taxes as a result of the increase.

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