You may want to update your clients' retirement income planning projections to reflect benefit increases by Social Security.
For benefit recipients, income will increase by 3.6 percent in January based on the inflation-linked Cost of Living Adjustment (COLA). This is the first COLA increase since 2009.
For future retirees, all previously earned Social Security credits will be adjusted higher by a 2.36 percent increase in the National Average Wage Index (NAWI), as reported for 2010 (compared to 2009). The index has a lag of one year. Although NAWI did not increase in 2009, the 2010 level is a record $41,674 – just above the $41,335 for 2008.
Recommended For You
The maximum taxable earnings subject to Social Security wage withholding will increase to $110,100 in 2012, compared to $106,800 in 2011. The earnings limit for workers who start collecting benefits before full retirement age (currently 66) will increase to $14,640.
You can see details at: www.socialsecurity.gov/cola
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.