Social Security benefits to rise 3.3 percent
Further, 11 million workers will be paying more into Social Security because of an increase in the taxable maximum on wages.
By Jeanne Sahadi, CNNMoney.com senior writer

NEW YORK (CNNMoney.com) -- The more than 53 million Social Security beneficiaries will receive a 3.3 percent cost-of-living adjustment in 2007, the Social Security Administration reported Wednesday.

And for the 163 million workers who pay into Social Security with every paycheck, the first $97,500 of their earnings will be subject to the 12.4 percent Social Security tax, half of which is typically paid by the worker and half by the worker's employer.

2007 Social Security benefits
The benefits of Social Security recipients will increase by 3.3% in 2007 to adjust for cost-of-living increases.
2007 benefit 2006 benefit
All retired workers $1,044 $1,011
Aged couple, both receiving benefits $1,713 $1,658
Widowed mother and two children $2,167 $2,098
Aged widow(er) alone $1,008 $976
Disabled worker, spouse and children $1,646 $1,593
All disabled workers $979 $947
Source: Social Security Administration

That's up from the taxable maximum of $94,200 this year. The SSA estimates 11 million workers will pay higher taxes as a result of this increase.

Six-figure earners currently pay $5,840.40 a year into Social Security, assuming their employer picks up half their Social Security tax. Next year they will pay $6,045, or an extra $204.60.

In addition, all of a worker's earnings are subject to the 2.9 percent Medicare tax, half of which is typically picked up by the worker's employer.

The cost of living adjustment in Social Security benefits will increase the average payment to $1,713 a month for a married couple in which both receive benefits. That's up from $1,658 this year.

A widowed mother with two children will see her benefit increase to $2,167 from $2,098, on average, while the widow or widower without dependents will see a benefit increase to $1,008 from $976.

The maximum Social Security benefit any worker retiring at full retirement age will receive in 2007 will be $2,116 a month, up from $2,053 this year.

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.