The Cost-Of-Living Adjustment (COLA) was enacted in 1972 and is collected by the Bureau of Labor Statistics. The measurement used to do these calculations is known as the Consumer Price Index (CPI), which overlooks the cost of consumer goods and services such as: housing, transportation, medical expenses, education, and food.
The calculations are taken monthly from the previous year’s 3rd quarter to the current year’s 3rd quarter and are then averaged to get the years overall total. It was announced in October of 2018 that the cost of living has increased by 2.8%.
What does this mean for Social Security Benefits?
To help stay in line with these rising prices and the cost-of-living, Social Security Benefits typically increase to match the COLA, and as of 2019, beneficiaries will receive a 2.8% increase in Social Security Income (SSI).
“Social Security announced on October 11, 2018 that Social Security Income for more than 67 million Americans will increase 2.8% in 2019.“
You should receive information about your new benefit amount in the mail sometime in early December. You may also view your personal COLA notice online by can visiting: www.socialsecurity.gov/myaccount.
As always, our team is here if you have any questions! 1-800-627-2768