The 2018 Social Security will see a 2.0% cost-of-living increase, the most substantial increase since 2012. A 2.0% increase is about $25 a month to the average recipient. Higher gas prices and other cost increases due to Hurricanes Harvey and Irma are seen as contributors to the reaching the 2 percent increase mark. Other contributing factors to the increase was an increase in housing and rent costs and partially offset by a decline in wireless phone service and new and used vehicle prices.
The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $128,700 from $127,200.
See our COLA increase watch for the most recent updates on COLA.
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.
2018 Social Security and SSI Effective & Payment Dates:
- Social Security benefits will be effective beginning with December 2017 benefits, which are payable in January 2018.
- Federal SSI payment levels will begin on December 29, 2017.
To calculate the 2018 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||719.004|
|Average (rounded to the nearest 0.001)||235.057||239.668|
|Inflation According to the CPI-W||0.3%||2.0%|
Third quarter 2016 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”.
|History of COLA (cost-of-adjustments) since 1975|
|Money & Finance||2017-2018 Cola|
|2017-2018 VA Disability Rates||2017-2018 Social Security|