By law, federal benefit rates increase when the cost of living rises, as measured by the Department of Labor’s Consumer Price Index (CPI-W).
When the annual Cost-of-Living Adjustment (COLA) increases, there are usually increases in the Social Security and Supplemental Security Income (SSI) benefit amount people receive each month.
The CPI-W rises when prices increase, making our cost of living go up. This means that prices for goods and services are, on average, somewhat more expensive. The COLA helps to offset the higher costs.
Because of the recent calculation of the Consumer Price Index (CPI-W) monthly Social Security and SSI benefits for more than 66 million Americans will increase by 2.0 percent in 2018.
For more social security and retirement income planning discussion, please contact Mike Elerath, NSSA, at 360-921-4090.