The Social Security Administration has announced that beginning in 2019, more than 67 million Americans receiving Social Security and Supplemental Security Income (SSI) will experience a 2.8 percent benefits increase. Our Social Security disability attorneys at Esper Aiello Law Group have reviewed the specifics of this breaking news to help you understand what exactly this means for you.
It’s worth noting the need for adjustments is determined every year. In 2010, 2011, and 2016, for instance, the cost-of-living adjustment (COLA) for retirees was zero. The Social Security Administration determines whether changes to benefits need to be made by assessing the “Consumer Price Index for Urban Wage Earners and Clerical Workers, CPI-W, from the Bureau of Labor Statistics” to ensure “purchasing power keeps up with inflation.”
That being said, the 2.8 benefits increase for 2019 will mark the largest adjustment hike since 2012 when the adjustment percentage reached 3.6 – which should be exciting news for beneficiaries everywhere. Despite this seemingly significant bonus, many experts are predicting sustained frustration amongst seniors due to the speed at which healthcare expenses and other related costs continue to increase.
Those collecting approximately $1,400 per month in benefits may see an average increase of up to almost $40 extra on their checks every month. However, for the approximate five million Social Security beneficiaries who only receive around $600-$635 in benefits per month, it’s possible for their entire COLA to be exhausted by premiums seeing as, although they have not yet been announced, Medicare Part B premiums are estimated to be roughly $135.50 for those who make less than $85,000.
Regardless, if you are one of the more than 62 million beneficiaries receiving Social Security benefits, you can expect to start seeing your 2.8 percent cost-of-living adjustment (COLA) at the start of the new year in January 2019. If you are one of the more than eight million beneficiaries receiving Supplemental Security Income (SSI), you should begin to receive your increased payments starting in December of 2018.
Only time will tell how these benefits increases will specifically affect your unique financial situation, you can at least always count on our Social Security benefits attorneys at Esper Aiello Law Group to be here for you when you need us. If you have any other questions related to Social Security benefits or the 2.8 percent benefits increase for 2019, we encourage you to reach out to one of our knowledgeable Social Security benefits attorneys at Esper Aiello Law Group as soon as possible. Call us, today, at 313.964.4900 or fill out the form in the sidebar or on our contact page, and learn more about how we can help you.