Today the Social Security Administration announced that monthly Social Security benefits will receive a cost-of-living adjustment (COLA) increase of 3.6 percent starting January 1, 2012.

"Social Security is the promise of a dignified retirement for all Americans. COLA increases are critical to keeping that promise, " said Rep. Lucille Roybal-Allard (CA-34).  "In this time of economic uncertainty, two out of three retirees rely on Social Security for half or more of their income, and one in three for 90% or more. The COLA increase is critical to ensuring that Social Security remains a lifeline of economic security for America's seniors."

Approximately 55 million Social Security recipients will get a 3.6 percent increase in benefits. Currently, the average monthly benefit is $1,082, and a 3.6 percent increase would mean $39 more in benefits every month, or about $467 per year. Federal law requires the program to base annual payment increases on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).If consumer prices increase from year to year, Social Security recipients automatically get higher payments, starting the following January. If price changes are negative, the payments stay unchanged. There was no COLA in the past two years.