Several retiree advocacies are critical of the use of the CPI-W to assess COLA adjustments, arguing that the index does not accurately reflect seniors' cost of living, which is overweighed by medical costs. (Photo: Shutterstock)
Social Security's more than 67 million beneficiaries will see a 2.8 percent increase in monthly checks beginning in January of 2019.
The cost of living adjustment was announced after the Bureau of Labor Statistics released inflation data for September, which was considerably lower than previous projections.
Here's how the COLA breaks down into dollars:
- Retirees receiving maximum benefits: The COLA will amount to a $73 monthly increase in checks for those receiving the maximum Social Security benefit, which will be $2,861 a month in 2019.
- Average for all retirees: It will mean a $39 a month increase in the average benefit for all retirees, which will be $1,461 in 2019.
- Retired couples: The average combined benefit for retired couples will increase $67 a month, to $2,448.
- Retired widows, widowers: The average benefit for retired widows and widowers will increase to $1,386.
- Disabled workers: The average monthly benefit for disabled workers with a spouse and at least one child will increase to $2,130.
How the Social Security COLA is calculated
The COLA is based on changes in the year-over-year inflation rate for the third quarter, which comprises July, August and September.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
