• Social Security Benefits to Increase in 2014
  • November 6, 2013 | Author: Jana M. Luttenegger
  • Law Firm: Davis, Brown, Koehn, Shors & Roberts, P.C. - Des Moines Office
  • The Social Security Administration (SSA) announced on Wednesday that there will be a 1.5% cost of living adjustment for social security benefits starting with the December 2013 benefits, payable in January 2014. The purpose of the cost of living adjustment (also referred to as COLA) is to keep Social Security and Supplemental Security Income (SSI) benefits in line with inflation. Each year the increase is based on the Consumer Price Index. The increase for 2014 is slightly below the increase of 1.7% for 2013. Here is a look back at the last 5 years:

    2010 - No change
    2011 - No change
    2012 - 3.6% increase
    2013 - 1.7% increase
    2014 - 1.5% increase

    According to the SSA, the increase is "approximately" equal to the product of the COLA and an individual's benefit amount, but the exact compuation is not so simple. If you are so inclined to read the entire calculation, you can do so on the SSA website.