Retirees who want to know how much their Social Security cost-of-living adjustment will change their benefits should check their online statements come December.
The Social Security Administration unveiled its cost-of-living adjustment, or COLA, for 2018 earlier this month. The 2 percent increase for next year marks a significant jump over last year, which was just 0.3 percent, and the biggest change since 2012, when older Americans saw a 3.6 percent raise.
More information on how the COLA will affect individual benefits will be available in December,. The actual changes will be in checks starting in January, according to a Social Security Administration spokesman. The average monthly benefit is expected to increase by $25.
Medicare premiums could offset that increase for about 70 percent of retirees, according to The Senior Citizens League. A “hold harmless” provision protects certain retirees from having their Social Security benefits reduced by an increase in Medicare premiums. That’s because covering the cost of any Medicare increases can wipe out any boost from Social Security.
All workers can benefit from checking their benefits online, even if they have not started collecting and have plenty of time before they do so.
The statements provide payment estimates based on the age you start taking benefits. Online profiles also include your earnings record.