In January, nearly 50 million Americans on Social Security will get a 2.7 percent cost of living adjustment. The Social Security Administration also said that about 9.9 million will pay higher taxes as a result of an increase in the maximum amount of earnings subject to the Social Security tax. The Social Security increase was the largest since 2001.
See "Social Security Benefits to Increase 2.7%", Fred Barbash and Stephen Barr, The Washington Post, October 18, 2004