The good news: Social Security recipients will get a COLA raise in January, expected to be about 3.5%, an increase of about $38 per month on the average monthly SS payment of $1,082.

That's especially good news for the 55 million SS recipients since there were no COLA increases in either 2010 or 2011 because inflation was low -- so said the government!

The lack of COLA raises was bad news for recipients who have seen their retirement accounts and home values dwindle during the lingering economic mess.

The cost of living adjustments are an attempt by the Social Security Administration to ensure that your SS benefit stays current with prices so that the buying power of your benefit doesn't decline over time.

Hey, empty DC suits, have you been to the supermarket lately?

"Robbing Peter to pay Paul"

Some of the SS benefit increase in January will be lost to higher Medicare Part B premiums which are deducted from monthly SS checks -- details to be announced next week.

A startling fact:

The Social Security Administration claims that most recipients rely on their monthly benefits for 90% of their retirement income!

We truly hope that this is not the case with the average benefit being less than $11,000...but, I guess, the numbers don't lie.

Scary!

Whether you are currently receiving SS benefits or will soon be applying for the benefits, it's now more important than ever to learn how to maximize your Social Security benefits.