The Cost-Of-Living Adjustment (COLA) was enacted in 1972 and is collected by the Bureau of Labor Statistics. The measurement used to calculate the COLA is known as the Consumer Price Index (CPI), which overlooks the cost of consumer goods and services such as: housing, transportation, medical expenses, education, and food.
The calculations are taken monthly from the previous year’s 3rd quarter to the current year’s 3rd quarter and are then averaged to get the overall total. It was announced on October 11, 2019 that the cost of living has increased and will rise by 1.6% starting in 2020.
What does this mean for Social Security Benefits?
Social Security Benefits typically increase to stay in line with inflation. Beneficiaries will receive a 1.6% increase in Social Security Income (SSI) beginning with the December 2019 benefits, which are payable in January 2020.
You should receive information about your new benefit amount in the mail sometime in early December. You may also view your personal COLA notice online by can visiting: www.socialsecurity.gov/myaccount.
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