Social Security benefits to increase in 2006

The average retired couple, both receiving Social Security benefits, will see their monthly check go from $1,583 to $1,648.

The standard SSI payment will go from $579 to $603 per month for an individual and $869 to $904 for a couple.

The average monthly check for a disabled worker will go from $902 to $939.

The Social Security Administration also announced Friday that 11.3 million workers will pay higher taxes next year because the maximum amount of Social Security earnings subject to the payroll tax will rise from $90,000 currently to $94,200 next year. In all, an estimated 159 million workers will pay Social Security taxes next year.

Monthly Social Security benefit checks have been adjusted automatically since 1975 to protect retirees’ income from erosion caused by rising inflation.

By law, the monthly increase in Medicare premiums cannot be higher than an individual’s cost of living adjustment. Social Security recipients whose cost of living increase will be less than the $10.30 premium increase next year will not be forced to pay the entire $10.30.

President Bush had hoped to get Congress this year to pass a Social Security overhaul he viewed as the centerpiece of his second term. It would have bolstered Social Security finances to deal with a looming funding crisis when 78 million baby boomers begin retiring and it would have allowed younger workers to create personal accounts. However, the measure has failed to attract widespread support in Congress.

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