The Social Security Administration,, announced a cost of living adjustment (COLA) of 3.6% effective in 2012.  This is the first increase for recipients since 2009. 

Most beneficiaries will notice this increase in their benefit check beginning January, 2012.  While this is a welcome increase, Medicare has not yet announced what, if any, changes their will be to Medicare's premiums for 2012.  This information will be available sometime in November at Medicare's site located at  Speculation is that some beneficiaries may see their cost of living adjustment partially or completely offset by any increase Medicare may impose.

For more information on how social security calculates the cost of living increase, visit