The fifty-three million people in the U.S. who rely on Social Security and Supplemental Security Income will see their benefits rise 3.3% next year, due to inflation.
Social Security and Supplemental Security Income benefits have increased automatically each year since 1975 based on the rise in the Bureau of Labor Statistics' Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), from the third quarter of the prior year to the third quarter of the current year.
As a result, the average Social Security check will rise $33 a month from $1,011 this year, to $1,044. In accordance, the maximum amount of earnings subject to the Social Security tax will increase to $97,500 from $94,200.
Meanwhile, the Internal Revenue Service is increasing the maximum annual contribution to 401(k)s to $15,500 from the current $15,000.