So you want to know how much Social Security is increasing in 2013

Calculating the COLA adjustment for Social Security is easy.

The base number that will be used for the 2013 increase is 223.2337 (that’s the average CPI-W for July, August and September 2011). The increase, if any, for 2013 will be the increase over this number by the same number for 2012. You can find the CPI-W each month here on the 15th of each month. Look for the press release for the CPI report.

For July 2012 the number is 225.568 that’s the first month of the three month average for 2012. The July number is 1.05% higher than the 2011 average. The final number depends on the CPI-W for August and September which together with July will form the 2012 average.

Bottom line is don’t look for much of an increase in SS for 2013. In addition, a small increase may be offset at least in part by an increase in the Medicare Part B premium increase.