The cost of living adjustment (COLA) is an increase in income that helps keep up with the rising cost of living. The COLA adjustment overlooks the cost of consumer goods and services such as: housing, transportation, medical expenses, education, and food and is often applied to wages, salaries, and benefits. 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 13th of 2020 that the cost of living has increased by 1.3%.
What does this mean for Social Security Benefits?
Social Security Benefits typically increase to stay in line with inflation. An estimated 70 million beneficiaries in America will receive a 1.3% increase in Social Security Income (SSI) beginning with the December 2020 benefits, which are payable in January 2021.
Automatic Cost-Of-Living Adjustments received since 1975
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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