Social Security Announces COLA Increase for 2015

Monthly Social Security and Supplemental Security Income (SSI) benefits for nearly 64 million Americans will increase 1.7 percent in 2015.

Over than 58 million Social Security disability recipients, retirees, dependents, and survivors will receive the Cost of Living Adjustment (COLA) beginning with benefits payable in January, while more than 8 million Supplemental Security Income recipients will begin receiving it on Dec. 31, 2014. Some beneficiaries receive payments under both programs.

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. 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.

Social Security said that as a result of the 2015 COLA, the average retired or disabled worker’s Social Security benefit will increase by $22 to $1,328 per month. The 2015 COLA will be the fourth in a row. Because of a lack of inflation, recipients did not receive increases in 2009 and 2010.