Social Security and SSI benefits to increase in 2019

Lloyd Doyle
October 14, 2018

But the Social Security announcement also serves as the baseline for a host of other federal benefits calculations that do require yearly reauthorization, including Department of Veterans Affairs payouts.

The 2019 cost-of-living increase will be 2.8%, the Social Security Administration announced Thursday.

The government will make it official on Thursday after the morning release of September's consumer price index. U.S. President Barack Obama recently stated that he can't guarantee retirees will receive their Social Security checks in August if the House and Senate cannot reach an agreement on reducing the deficit.

One wild card: Hurricane Florence. A 2.7% increase would amount to $38 a month or $456 for a full year.

More than 62 million retirees will receive a bump in benefits starting in January, which would mean an extra $39 a month for the average retired worker.

The increase is due to an automatic cost-of-living adjustment, or COLA, that's mandated by law and is based on inflation. Read: The reward for the lowest unemployment rate since 1969? Research AARP conducted with the Association of Young Americans earlier this year found that about 9 in 10 (86 percent) across generations said it's very or somewhat important that Social Security be there for them when they retire including 78 percent of Millennials, 89 percent of Gen Xers, and 95 percent of Baby Boomers.

The benefits are supposed to increase with inflation, which has been tied to the rise in gas prices, health care, and higher rents. For seniors who spend a lot of money on those things the increase in Social Social benefits probably won't cover all their expenses.

The annual cost of living adjustment is pegged to inflation, which has been rising faster over the past year.

Other reports by Iphone Fresh

Discuss This Article