The pay raise for Social Security recipients is the largest since 2012, and over 67 million Americans will see the increase in their payments beginning in January.
The Social Security Administration has announced a cost of living adjustment (COLA) to recipients’ monthly Social Security and Supplemental Security Income (SSI) benefits. More than 67 million Americans will see the 2.8% increase in their payments beginning in January of 2019. The increase – the largest seen since 2012 – is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers and was put in place to ensure the purchasing power of these benefits isn’t eroded by inflation.
This figure is an increase from last year’s 2.0% adjustment. According to the Social Security Administration, on average, retired workers currently collect $1,420 a month in Social Security payments, or roughly $17,040 a year. The 2.8% COLA will add about $50 a month to those payments, or $600 for the year.
Keep in mind, all federal benefits must be direct deposited. So, if you haven’t already started receiving benefits, you need to establish electronic transfers to your bank or financial institution.
The agency also announced that for the first time, most people who receive Social Security payments will be able to view their COLA notice online through their “my Social Security” account, which can be created online at www.socialsecurity.gov/myaccount
Source: Social Security Administration