Social Security benefits increase by 1.5 percent

By WEEK Producer

Credit: MGN online

Social Security benefits increase by 1.5 percent

October 30, 2013 Updated Oct 30, 2013 at 3:30 PM CDT

WASHINGTON, D.C. -- Social Security benefits are going up for nearly 58 million people.

The government announced Wednesday that the benefits will increase by 1.5 percent next year.

The annual cost-of-living adjustment, known as COLA, is based on a government measure of inflation.

This year's increase is the smallest since automatic adjustments were adopted in 1975.

Social security pays retired workers an average of $1,272 a month. A 1.5 percent raise comes to about $19.

The amount of wages subject to social security taxes is also going up.

Social security is funded by a 12.4 percent tax on the first $113,700 in wages earned by a worker, with half paid by employers and the other half withheld from workers' pay.

The wage threshold will increase to $117,000 next year, the social security administration said.