The 75 million Americans who receive Social Security benefits will see a 2.8% increase in payments next year, the Social Security Administration said Friday.
The cost-of-living adjustment is just below the inflation rate of 3% announced by the Bureau of Labor Statistics, also on Friday.
The adjustment is lower than the average over the past decade, but higher than last year’s. The average adjustment for the past 10 years is 3.1%, including a 2.5% increase last year. On average, beneficiaries’ monthly payments will rise by about $56, the SSA said.
Beneficiaries include people who receive Old-Age, Survivors and Disability Insurance, as well as Supplemental Security Income.
“Social Security is a promise kept, and the annual cost-of-living adjustment is one way we are working to make sure benefits reflect today’s economic realities and continue to provide a foundation of security,” Social Security Administration Commissioner Frank J. Bisignano said in a statement. “The cost-of-living adjustment is a vital part of how Social Security delivers on its mission.”
The tax rate for Social Security and Medicare will remain steady at 7.65% for employees and 15.3% for self-employed workers.