What is the 2018 Social Security COLA?

It is 2 percent. SSA's notice for 2018 states that the cost-of-living increase is 2 percent for benefits under title II of the Social Security Act and for payments under title XVI.

When does the 2018 COLA take effect?

Under title II it is effective for individuals eligible for December 2017 benefits, which are payable in January 2018. That is why an increase settled in the autumn of 2017 is the increase people see in their 2018 payments.

Does the 2018 COLA apply to Supplemental Security Income?

Yes. Federal SSI payments also increase by 2 percent, effective for payments made for January 2018. The notice states the same increase for title XVI payments as for title II benefits.

Who settles the COLA, and where is it published?

The Social Security Administration does, and it publishes the determination as a notice in the Federal Register titled "Cost-of-Living Increase and Other Determinations for 2018". That notice is the document this page cites, and it is where 2 percent is stated in a sentence.

How is the cost-of-living increase worked out?

From the Consumer Price Index for Urban Wage Earners and Clerical Workers, which the Bureau of Labor Statistics produces. SSA compares that index for the calendar quarter ending in September with the same quarter of the most recent year in which an increase was determined, and rounds the result. For 2018 that computation gave 2 percent.

Does every beneficiary get the same increase?

The rate is the same for every benefit it applies to: the notice states a single increase of 2 percent for benefits under title II and payments under title XVI. What differs between people is the benefit the rate is applied to, not the rate itself.

What else does the same notice decide?

The notice that carries the 2 percent increase also settles other amounts for 2018, including the contribution and benefit base, the retirement earnings test exempt amounts, the substantial gainful activity amounts and the SSI student earned income exclusion. Each of those is a separate figure with its own sentence in the notice, and this page publishes the cost-of-living increase only.

How does the 2018 COLA compare with the year before?

The increase for 2018 is 2 percent. The increase for 2017 was 0.3 percent. Each year's figure is settled on its own and stated in its own notice, so an increase in a given year does not carry into the next.

2018 Social Security COLA

Name: 2018 Social Security COLA
Creator: SSA

The 2018 Social Security COLA is 2%.

Cost-of-living increase2%

Effective 2018-01-01Source: Cost-of-Living Increase and Other Determinations for 2018 (SSA)Verified 2026-09-01

Compared with 2017

Item	2017	2018	Change
Cost-of-living increase	0.3%	2%	+1.7% (+566.7%)

Who it applies to

The increase applies to people receiving Social Security retirement, survivors or disability benefits under title II of the Social Security Act, and to people receiving Supplemental Security Income under title XVI. Both rise by 2 percent. A title II benefit reflects the increase from the December 2017 benefit, which is payable in January 2018; an SSI payment reflects it from the payment made for January 2018. It is a single rate rather than a per-person calculation, so every benefit it applies to rises by the same 2 percent and what differs between people is the amount the rate is applied to. The same notice settles other program amounts for 2018 as well, among them the contribution and benefit base, the retirement earnings test exempt amounts and the substantial gainful activity amounts; this page states the cost-of-living increase only, and each of those is a separate figure with its own sentence in the notice.

What changed this year, and why

The Social Security Administration determined a cost-of-living increase of 2 percent for 2018. Its notice states the increase as 2 percent for benefits under title II of the Social Security Act and for payments under title XVI, so retirement, survivors and disability benefits and Supplemental Security Income payments all rise by the same 2 percent. Under title II the increase reaches individuals eligible for December 2017 benefits, which are payable in January 2018. SSI payments increase by 2 percent effective for payments made for January 2018. The increase for 2017 was 0.3 percent; each year's figure is determined on its own and stated in its own notice.

Common questions

What is the 2018 Social Security COLA?: It is 2 percent. SSA's notice for 2018 states that the cost-of-living increase is 2 percent for benefits under title II of the Social Security Act and for payments under title XVI.
When does the 2018 COLA take effect?: Under title II it is effective for individuals eligible for December 2017 benefits, which are payable in January 2018. That is why an increase settled in the autumn of 2017 is the increase people see in their 2018 payments.
Does the 2018 COLA apply to Supplemental Security Income?: Yes. Federal SSI payments also increase by 2 percent, effective for payments made for January 2018. The notice states the same increase for title XVI payments as for title II benefits.
Who settles the COLA, and where is it published?: The Social Security Administration does, and it publishes the determination as a notice in the Federal Register titled "Cost-of-Living Increase and Other Determinations for 2018". That notice is the document this page cites, and it is where 2 percent is stated in a sentence.
How is the cost-of-living increase worked out?: From the Consumer Price Index for Urban Wage Earners and Clerical Workers, which the Bureau of Labor Statistics produces. SSA compares that index for the calendar quarter ending in September with the same quarter of the most recent year in which an increase was determined, and rounds the result. For 2018 that computation gave 2 percent.
Does every beneficiary get the same increase?: The rate is the same for every benefit it applies to: the notice states a single increase of 2 percent for benefits under title II and payments under title XVI. What differs between people is the benefit the rate is applied to, not the rate itself.
What else does the same notice decide?: The notice that carries the 2 percent increase also settles other amounts for 2018, including the contribution and benefit base, the retirement earnings test exempt amounts, the substantial gainful activity amounts and the SSI student earned income exclusion. Each of those is a separate figure with its own sentence in the notice, and this page publishes the cost-of-living increase only.
How does the 2018 COLA compare with the year before?: The increase for 2018 is 2 percent. The increase for 2017 was 0.3 percent. Each year's figure is settled on its own and stated in its own notice, so an increase in a given year does not carry into the next.

How the increase is computed, and when there is none

The Social Security Administration calculates the annual cost-of-living adjustment by comparing the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from two periods. The law requires comparing the CPI-W average from the third quarter of the current year against the CPI-W average from the last computation quarter, which is the third quarter of the previous year when an increase was last applied. The process involves taking the arithmetic mean of the CPI-W values for July, August, and September of each quarter. These quarterly averages are then compared to determine the percentage change. If the current quarter's average exceeds the previous quarter's average, benefits increase by that percentage amount. For 2018, this comparison resulted in a 2% increase. When there is no increase—that is, when the CPI-W does not rise from one computation period to the next—no cost-of-living adjustment is applied and benefit amounts remain unchanged. This ensures that benefits only increase when actual inflation, as measured by the CPI-W, occurs.

The law states that a cost-of-living increase for benefits is determined based on the percentage increase, if any, in the CPI from the last computation quarter to the third quarter of the current year.
Cost-of-Living Increase and Other Determinations for 2018 (SSA)

Only three months of the CPI decide it

Only three calendar months determine the entire COLA. Section 215(i)(1) of the Social Security Act defines the CPI for a cost-of-living computation quarter as the arithmetic mean of this index for the 3 months in that quarter, and the computation quarter is always July, August, and September. SSA averages the CPI for those three months and compares that average to the average for the same three months in the prior computation year. For the 2018 adjustment, the July-through-September 2017 average exceeded the July-through-September 2016 average by 2 percent when rounded to the nearest tenth of a percent. Prices from the other nine months of the year do not enter the calculation at all. Because only one quarter of data decides the outcome, a spike or dip in summer prices alone can change whether a COLA is declared. The arithmetic mean is rounded to the nearest thousandth before the comparison is made.

the arithmetic mean of this index for the 3 months in that quarter
Cost-of-Living Increase and Other Determinations for 2018 (SSA)

It starts with December benefits, paid in January

The 2.0 percent COLA for 2018 technically begins with benefits for December 2017, which are payable in January 2018. Social Security benefits are paid one month behind: the benefit for a given month is received the following month, so December 2017 benefits arrive in recipients’ accounts in January 2018. That is the first check in which most beneficiaries actually see the higher amount. For those first eligible after 2017, the 2.0 percent increase does not apply - their initial benefit is computed with 2017 wage levels already, so no separate COLA is added. The COLA also flows through to title XVI (Supplemental Security Income) payments, which are payable on the same schedule, and to the Medicare Part B premium hold-harmless provisions that can limit the net increase seen by some beneficiaries in certain years. But for title II recipients already on the rolls, the rule is straightforward: the increase starts with the December 2017 benefit, paid in January 2018.

benefits will increase by 2.0 percent beginning with benefits for December 2017, which are payable in January 2018.
Cost-of-Living Increase and Other Determinations for 2018 (SSA)

Working before full retirement age withholds part of the benefit

If you are below full retirement age (called NRA, or normal retirement age, in the Social Security rules) and you work, Social Security will withhold part of your benefit when your earnings exceed an annual exempt amount. The withholding rate depends on whether you reach NRA during the year. If you attain NRA during the year, the SSA withholds $1 in benefits for every $3 of earnings above the exempt amount, but only for months before you reach NRA. If you are below NRA for the entire year, the withholding is steeper: $1 is withheld for every $2 of earnings above the lower exempt amount. In either case, once you reach NRA, earnings from that month onward are not counted under the earnings test. The exempt amounts are adjusted each year based on wage growth.

For beneficiaries who attain NRA in the year, we withhold $1 in benefits for every $3 of earnings over the annual exempt amount for months before NRA.
Cost-of-Living Increase and Other Determinations for 2018 (SSA)

The year you reach full retirement age has its own limit

The Retirement Earnings Test has different exempt amounts depending on a beneficiary's age. A higher exempt amount applies in the year a person reaches normal retirement age (NRA), but only for earnings in months before they actually attain NRA. Once they reach NRA, there is no longer an earnings test. A lower exempt amount applies at all other ages below NRA. The annual exempt amounts are set by formulas based on the national average wage index and are adjusted each year. This means someone reaching NRA in a given year can earn more before benefits are reduced during the months before their birthday month than they could in other years when they were under NRA.

A higher exempt amount applies in the year in which a person attains NRA, but only for earnings in months before such attainment.
Cost-of-Living Increase and Other Determinations for 2018 (SSA)

What earnings count as substantial gainful activity

To qualify for Social Security disability benefits, a person must be unable to engage in substantial gainful activity (SGA). SSA uses monthly earnings thresholds to determine whether someone is engaging in SGA. A person who is earning more than a certain monthly amount is ordinarily considered to be engaging in SGA. The monthly earnings considered as SGA depends on the nature of a person's disability. For statutorily blind individuals under title II, the Act specifies one SGA amount, while for non-blind disabled individuals, regulations specify a different amount. For 2018, these amounts are adjusted based on changes in the national average wage index. If a disabled beneficiary's earnings exceed the applicable SGA threshold, they generally will not be considered disabled for benefit purposes.

A person who is earning more than a certain monthly amount is ordinarily considered to be engaging in SGA.
Cost-of-Living Increase and Other Determinations for 2018 (SSA)

How each figure was verified

Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.

Cost-of-Living Increase and Other Determinations for 2018 (SSA)

Cost-of-living increase: The cost-of-living increase is 2.0 percent for monthly benefits under title II and for monthly payments under title XVI of the Act.

Fetched 2026-08-29T02:44:36.958Z
Verified 2026-09-01
Stored text sha256 7bcd925c1987c42ee2ef1f843d974211646a3c896f7b4646d9347ee789a6c7bc