Social Security benefits will increase by 4.1 percent in 2006, the Social Security Administration announced on Oct. 14.

The cost-of-living allowance (COLA) will boost the average retiree's benefit from $963 a month to $1,002 a month.

The 4.1 percent COLA also means that the ceiling on wages subject to the 12.4 percent Social Security tax will be raised from $90,000 to $94,200.