Seniors will get a 1.7% increase in their monthly Social Security payments in 2013, one of the smallest cost-of-living adjustments since the automatic annual increase in benefits took effect in 1975.
The Social Security Administration on Tuesday announced the 1.7% COLA, which is based on the rate of inflation. It is the sixth time since 1975 that the adjustment has been less than 2%. This year, retirees received a 3.6% increase after receiving no increase the previous two years.
Seniors receive an average of $1,237 a month, meaning the increase will add about $21 a month to their checks, according to the agency. However, the Social Security Administration warned that "for some beneficiaries, their Social Security increase may be partially or completely offset by increases in Medicare premiums."