Tampa, FL (Law Firm Newswire) December 12, 2018 - The Social Security Administration (SSA) recently announced that beneficiaries will see a 2.8 percent rise in their payments next year due to the cost-of-living adjustment for 2019.
The annual cost-of-living adjustment, known as COLA, is based on current and anticipated rates of inflation and mandated by law to be automatic for Social Security benefits. The COLA will take effect on December 31 and in January for around 70 million Americans. It applies to Social Security beneficiaries including disabled workers, retirees and their dependents.
“The SSA’s cost-of-living adjustment provides a welcome boost to benefits for millions of people who rely on Social Security payments,” commented Florida social security disability attorney David W. Magann. “However, the increase does not do enough to actually help seniors and disabled individuals who struggle to make ends meet with expenses that are growing at a faster rate than overall inflation.”
The latest COLA marks the biggest year-over-year increase since 2012 when Social Security payments rose 3.6 percent. It is slightly higher than the 2 percent rise beneficiaries saw in 2018. The average monthly Social Security benefit for a retired worker is currently $1,422. It will be an estimated $1,461 per month next year with the COLA. The expected yearly increase is $468.
Each year the SSA assesses whether there should be an adjustment to benefits. The agency determines the COLA based on the Consumer Price Index (CPI) calculated by the government.
Despite the increase, many seniors and their advocates are concerned that the Social Security COLA is not enough. It fails to take into account the rising prices that the elderly face, including higher health care and housing costs. They have called for the government to use an index that reflects the spending patterns of senior beneficiaries.
David W. Magann, P.A.
156 W. Robertson St.
Brandon, FL 33511
Call: (813) 657-9175
4012 Gunn Highway #165
Tampa, Florida 33618