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Social Security to rise in January 2017

If you receive Social Security payments, you may already know that they are adjusted yearly based on inflation and several other factors. This year, that is happening again.

Social Security recipients may be pleased to know that they should be receiving a raise on the first of January, but not everyone is going to notice a difference. The boost is small at just .3 percent in 2017. Per month, that works out to around $5 extra per person, an amount some people think is too low considering the rising rates of other premiums they must pay as recipients.

With over 60 million people receiving Social Security benefits, the .3 percent raise does add up, but it only averages out to $1,360 for the average retired worker. Previously, those retired workers would have been making around $1355 per month. Is that small difference enough to make up for inflation?

Not in some people's opinions. Around 70 percent of these people receiving Social Security benefits will also find that their Medicare Part B insurance premiums have increased by around .3 percent. This means that the slight adjustment in Social Security benefits is only offsetting the Medicare difference.

This small cost-of-living adjustment is based on the government's Consumer Price Index. In years when inflation is low, there may be small or no increase in benefits, as seen here. This year is a very small increase, though years with a larger inflation index can lead to impressive jumps in the amount paid. If you have questions about how your Social Security benefits will change, you can speak with your legal representative.

Source:, "Social Security recipients receive raise Jan. 1 but most won't notice the change," Leada Gore, Dec. 28, 2016

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In Minnesota, we handle Social Security Disability Insurance (SSDI) claims. Throughout the nation, we handle SSDI applications and appeals for people from Ohio to Kansas, North Dakota to Texas and everywhere in between.


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