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Here’s how your Social Security cost-of-living adjustment is calculated – and what it could look like in 2021

Here’s how your Social Security cost-of-living adjustment is calculated – and what it could look like in 2021

Finance
People line up outside the Social Security Administration office in San Francisco.Getty ImagesIf you collect Social Security benefits, you're probably already eagerly waiting to see what your cost-of-living adjustment will be next year.New, early estimates from The Senior Citizens League, a nonpartisan senior group, point to a possible 1.5% COLA increase for 2021.In 2020, Social Security recipients got a 1.6% increase. For retired workers, that meant their average monthly benefit increased to $ 1,503 per month, up from $ 1,479 per month.Meanwhile, Social Security COLAs have averaged 1.4% in the past decade.How those adjustments are calculatedThe Social Security Administration generally announces its COLA in October for the following year.The amount is calculated based on the percentage cha...
How to make the most of Social Security's 2.8% cost-of-living adjustment for 2019

How to make the most of Social Security's 2.8% cost-of-living adjustment for 2019

Finance
The Social Security Administration has announced that the cost-of-living adjustment to benefits will be 2.8 percent next year. That is the biggest increase since 2012, when beneficiaries saw a 3.6 percent increase. But before you celebrate, there are some things you need to keep in mind. The average Social Security benefit in 2018 is $ 1,422. With the cost-of-living adjustment, that will be $ 1,461 per month in 2019. That extra $ 39 per month will amount to $ 468 per year, or $ 936 per year f...