For the second year in a row, Social Security benefits will increase. Starting in 2013 benefits will increase by 1.3%. This is not a random number. The increase is based on an increase in the Consumer Price Index from the third quarter of 2011 to the third quarter of 2012. This is good news, especially considering that there was no increase in benefits from 2009 to 2011. The average benefit will be increased $19 from $1,113 to $1,129.
This increase in benefits also means that there will be an adjustment of other figures as well. For instance, the cost of a quarter of coverage for disability and retirement benefits will increase $30 from $1,130 to $1,160. Additionally, the monthly earnings for what Social Security will consider Substantial Gainful Activity is going up from $1,010 to $1,040. And those people receiving Supplemental Security Income will see an increase in monthly benefits from $698 to $710. However, the SSI limits for income and resources will remain at $2,000 for an individual and $3,000 for a couple.
This may not seem like a huge increase but it is certainly a welcome one. If you have any questions about the money you are receiving or need help with your disability application, please contact me.