Social Security recipients to get 1.7 percent raise next year

The Social Security Administration announced Tuesday that 56 million retirement beneficiaries are set to get a cost-of-living raise of 1.7 percent next year. The same goes for the 8 million people receiving disability payments from the agency.

The raise is tied to inflation. Checks this year went up 3.6 percent, after two years when inflation was so low that beneficiaries didn't get a raise at all.

In addition, the agency announced that the level of earnings subject to the Social Security tax is going up $3,600 to $113,700 next year. Social Security says this means that about 10 million workers -- out of 163 million -- will pay more in taxes next year.