Cost-of-Living Adjustment (COLA) Information

Cost-of-Living Adjustment (COLA) Information for 2019

Social Security and Supplemental Security Income (SSI) benefits for more than 67 million Americans will increase 2.8 percent in 2019.

The 2.8 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 62 million Social Security beneficiaries in January 2019. Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2018. (Note: some people receive both Social Security and SSI benefits.)

Read more about the Social Security Cost-of-Living adjustment for 2019.

The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $132,900.

The earnings limit for workers who are younger than "full" retirement age (age 66 for people born in 1943 through 1954) will increase to $17,640. (We deduct $1 from benefits for each $2 earned over $17,640.)

The earnings limit for people turning 66 in 2019 will increase to $46,920. (We deduct $1 from benefits for each $3 earned over $46,920 until the month the worker turns age 66.)

There is no limit on earnings for workers who are "full" retirement age or older for the entire year.

Read more about the COLA, tax, benefit and earning amounts for 2019.

Medicare Information

Information about Medicare changes for 2019, when announced, will be available at www.medicare.gov. For Social Security beneficiaries receiving Medicare, Social Security will not be able to compute their new benefit amount until after the Medicare premium amounts for 2019 are announced. Final 2019 benefit amounts will be communicated to beneficiaries in December through the mailed COLA notice and my Social Security’s Message Center.

Your COLA Notice

In December 2018, Social Security COLA notices will be available online to most beneficiaries in the Message Center of their my Social Security.

This is a secure, convenient way to receive COLA notices online and save the message for later. You will still receive your COLA notice by mail this year, but in the future you will be able to choose whether you receive your notice online instead of on paper. Be sure to choose your preferred way to receive courtesy notifications so you won’t miss your secure, convenient electronic COLA notice.

Online notices will not be available to representative payees, individuals with foreign mailing addresses, or those who pay higher Medicare premiums due to their income. We plan to expand the availability of COLA notices to additional online customers in the future.

Remember, our services are always free of charge. No government agency or reputable company will solicit your personal information by email or request advanced fees for services in the form of wire transfers or gift cards. Avoid falling victim to fraudulent internet “phishing” schemes by not revealing personal information, selecting malicious links, or opening malicious attachments. You can learn more about the ways we protect your investment, personal information, and my Social Security account here.

History of Automatic Cost-Of-Living Adjustments (COLA)

The purpose of the COLA is to ensure that the purchasing power of Social Security and Supplemental Security Income (SSI) benefits is not eroded by inflation. It is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the last year a COLA was determined to the third quarter of the current year. If there is no increase, there can be no COLA.

The CPI-W is determined by the Bureau of Labor Statistics in the Department of Labor. By law, it is the official measure used by the Social Security Administration to calculate COLAs.

Congress enacted the COLA provision as part of the 1972 Social Security Amendments, and automatic annual COLAs began in 1975. Before that, benefits were increased only when Congress enacted special legislation.

Beginning in 1975, Social Security started automatic annual cost-of-living allowances. The change was enacted by legislation that ties COLAs to the annual increase in the Consumer Price Index (CPI-W).

The change means that inflation no longer drains value from Social Security benefits.

The 1975-82 COLAs were effective with Social Security benefits payable for June (received by beneficiaries in July) in each of those years. After 1982, COLAs have been effective with benefits payable for December (received by beneficiaries in January).

Automatic Cost-Of-Living Adjustments received since 1975

  • July 1975 -- 8.0%
  • July 1976 -- 6.4%
  • July 1977 -- 5.9%
  • July 1978 -- 6.5%
  • July 1979 -- 9.9%
  • July 1980 -- 14.3%
  • July 1981 -- 11.2%
  • July 1982 -- 7.4%
  • January 1984 -- 3.5%
  • January 1985 -- 3.5%
  • January 1986 -- 3.1%
  • January 1987 -- 1.3%
  • January 1988 -- 4.2%
  • January 1989 -- 4.0%
  • January 1990 -- 4.7%
  • January 1991 -- 5.4%
  • January 1992 -- 3.7%
  • January 1993 -- 3.0%
  • January 1994 -- 2.6%
  • January 1995 -- 2.8%
  • January 1996 -- 2.6%
  • January 1997 -- 2.9%
  • January 1998 -- 2.1%
  • January 1999 -- 1.3%
  • January 2000 -- 2.5% (1)
  • January 2001 -- 3.5%
  • January 2002 -- 2.6%
  • January 2003 -- 1.4%
  • January 2004 -- 2.1%
  • January 2005 -- 2.7%
  • January 2006 -- 4.1%
  • January 2007 -- 3.3%
  • January 2008 -- 2.3%
  • January 2009 -- 5.8%
  • January 2010 -- 0.0%
  • January 2011 -- 0.0%
  • January 2012 -- 3.6%
  • January 2013 -- 1.7%
  • January 2014 -- 1.5%
  • January 2015 -- 1.7%
  • January 2016 -- 0.0%
  • January 2017 -- 0.3%
  • January 2018 -- 2.0%
  • January 2019 -- 2.8%
(1) The COLA for December 1999 was originally determined as 2.4 percent based on CPIs published by the Bureau of Labor Statistics. Pursuant to Public Law 106-554, however, this COLA is effectively now 2.5 percent.