Social Security’s Cost of Living Adjustment (COLA)
April 16, 2020
The Social Security Administration has been automatically generating annual Cost of Living Adjustments. Prior to 1975, Social Security benefit increases were set by legislation. Now, Social Security annually increases Supplemental Security Income (SSI), due to the increased cost-of-living (COLA), based on, by law, the Bureau of Labor Statistics Consumer Price Index (CPI-W).
As expected with inflation comes an increase cost of living. Accordingly the price of goods, services, etc. increase as well. COLA helps to counterbalance this increase. According to the Social Security Administration benefits will increase for 69 million Americans by 1.6 percent in 2020. This table shows the amounts effective by increase for the years shown, for individuals and couples. So with the adjustment the you will still receive the value of your SSI payment, even with inflation.
This blog is intended for information purposes only and does not establish legal representation or financial guidance.