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.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.