Social Security Announces 2.8 Percent Benefit Increase for 2019

The U.S. Social Security Administration (SSA) has announced that Social Security and Supplemental Security Income (SSI) benefits for more than 67 million Americans will increase 2.8 percent next year. The cost-of-living adjustment (COLA) will commence with benefits payable to more than 62 million Social Security beneficiaries in January 2019, while higher payments to more than 8 million SSI beneficiaries will start on Dec. 31, 2018. The Social Security Act connects the yearly COLA to the increase in the Consumer Price Index as determined by the Department of Labor's Bureau of Labor Statistics. Additional adjustments that are enacted in January of each year are based on the rise in average wages, and the maximum amount of earnings subject to the Social Security tax will climb to $132,900 from $128,400. For the first time this year, most people who receive Social Security payments will be able to see their COLA notice online via their my Social Security account, which can be accessed at www.socialsecurity.gov/myaccount . Data concerning Medicare changes for 2019, when announced, will be provided at www.medicare.gov . For beneficiaries receiving Medicare, Social Security will be unable to compute their new benefit amount until after the Medicare premium amounts for 2019 are announced. Final 2019 benefit amounts will be relayed to beneficiaries in December through the mailed COLA notice and my Social Security Message Center.