The 2018 Social Security is projected to receive a 2.2% cost-of-living increase next year according to the Trustees who oversee the program. A 2.2% increase would be about $30 a month. The Social Security increase will not be announced until mid-October 2017 when COLA (Cost of Living Adjustments) for the third quarter.
See our COLA increase watch for the most recent estimates and updates.
2017 Social Security benefits increase was 03.%, after social security recipients received no increase in 2016.
2016 Social Security benefits did not include a cost-of-living increase. This is due to the inflation measurement that is used to determine COLA was actually negative, no inflation. Fortunately, SSA benefits cannot decrease even if there is negative inflation.
This is the third time in the last 6 years that there has been no increase in COLA or social security benefits. Last year the COLA increase was 1.7%. The difficulty for many retirees is that despite the negative inflation many will be faced with increased premiums on Medicare, the Federal Employee Health Benefits Program and many other healthcare policies. About a third of the approximate 50 million Medicare recipients will see over a 50% increase in Medicare Part B premiums.
Cheaper gas prices can be blamed for no COLA increase, an expense Social Security recipients typically stand to benefit from the least. This is because the price of gas, a measurement used to determine COLA, continues to drop.
To calculate the 2017 COLA (Cost-of-Living Adjustments) increase, if any, the average of the indices of July (.02%), August (TBA), and September (TBA) 2016 are be compared with the 2014 3rd quarter average. The end result is the percentage by which Social Security benefits are adjusted. This is referred to as the Cost of Living Adjustment (COLA).
|Third quarter total||705.17||TBD|
|Average (rounded to the nearest 0.001)||235.057||TBD|
|Inflation According to the CPI-W||0.3%||TBD|
Third quarter 2014 will be used for the three month average comparison as the law dictates that the SSA use the same three months of “the last year in which COLA became effective”. There was no COLA increase in 2015.
For August and September 2016, the index increased 0.3% prior to seasonal adjustment.
|History of COLA (cost-of-adjustments) since 1975|
|Money & Finance||2017-2018 Cola|
|2017-2018 VA Disability Rates||2017-2018 Social Security|