Nearly 62 million seniors and disabled Americans will receive a 1.7% increase in their Social Security benefits next year but the cost-of-living adjustment may not keep up with the pending increase in Medicare premiums.  

With the 1.7% COLA increase, the average monthly Social Security payment for a retired worker will increase from $1,240 to $1,261. The average monthly payment for a disabled worker will increase from $1,113 to $1,132.

Read more: National coalition calls on Congress to improve Social Security benefits for women

However, seniors are facing hikes in their 2013 Medicare premiums – soon-to-be announced on Medicare.gov – which will likely negate the modest Social Security benefits bump.

“For some beneficiaries, their Social Security increase may be partially or completely offset by increases in Medicare premiums,” according to the Social Security Administration.

Learn More:

• Social Security Administration: Cost-of-Living Adjustment (COLA) Information for 2013
• Social Security Administration: Social Security Announces 1.7 Percent Benefit Increase for 2013
• Social Security Administration: 2013 Social Security Changes
• Medicare.gov
• WhatTheFolly.com: National coalition calls on Congress to improve Social Security benefits for women
• WhatTheFolly.com: Analysis: Reforms needed to ensure sustainability of Social Security & Medicare
• WhatTheFolly.com: Older Americans hit hard by the Great Recession
• WhatTheFolly.com: Transcript: Sen. Bernie Sanders on the recession and older Americans