By Dave Winkler
The Social Security Administration announced a 2.8% cost of living adjustment (COLA) that will benefit 63 million recipients starting January 20191. This adjustment marks the second consecutive year of COLA growth of two percent or greater. In 2017, the increase was 2.0%2. In 2015 and 2016, COLA increases were 0.0% and 0.3%, respectively.
Beneficiaries include Americans who qualify for Social Security benefits, qualified current, divorced, or surviving spouses, disabled workers, and eligible dependents and family members.
At Cornerstone, clients who currently receive Social Security income benefits view this monthly check as helpful, but not the primary source of covering retirement expenses. For many clients, although they tend to qualify for the higher benefit due to higher income during earning years, benefits represents less than 20% of income needed to maintain their chosen standard of living.
Notifications of the 2.8% COLA will be sent to recipients by mail in early December. For the first time, Social Security recipients may also view these notices at www.socialsecurity.gov/myaccount.