2012 Social Security and Medicare changes: In January 2012, nearly 60 million Americans will receive a 3.6 percent cost-of-living adjustment (COLA) increase. Additionally, based on the increase in average wages, the maximum amount of earnings subject to the Social Security tax will increase to $110,100 from $106,800. The effect of this will necessitate that of the 161 million workers who will pay Social Security taxes in 2012, roughly10 million will pay higher taxes as a result of this increase.

2012 Medicare Costs: 

Premium Part A: $451

Part B monthly premium: $99.90 (higher income consumers may pay more)

Part A and/or Part B late enrollment penalty: 10%

Part C monthly premium: varies by plan   

Part D monthly premium: varies by plan