2019 Social Security COLA
The 2019 Social Security COLA is 2.8%.
Effective 2019-01-01Source: Cost-of-Living Increase and Other Determinations for 2019 (SSA)Verified 2026-09-01
Compared with 2018
| Item | 2018 | 2019 | Change |
|---|---|---|---|
| Cost-of-living increase | 2% | 2.8% | +0.8% (+40.0%) |
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 2.8 percent. A title II benefit reflects the increase from the December 2018 benefit, which is payable in January 2019; an SSI payment reflects it from the payment made for January 2019. It is a single rate rather than a per-person calculation, so every benefit it applies to rises by the same 2.8 percent and what differs between people is the amount the rate is applied to. The same notice settles other program amounts for 2019 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 2.8 percent for 2019. Its notice states the increase as 2.8 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 2.8 percent. Under title II the increase reaches individuals eligible for December 2018 benefits, which are payable in January 2019. SSI payments increase by 2.8 percent effective for payments made for January 2019. The increase for 2018 was 2 percent; each year's figure is determined on its own and stated in its own notice.
Common questions
- What is the 2019 Social Security COLA?
- It is 2.8 percent. SSA's notice for 2019 states that the cost-of-living increase is 2.8 percent for benefits under title II of the Social Security Act and for payments under title XVI.
- When does the 2019 COLA take effect?
- Under title II it is effective for individuals eligible for December 2018 benefits, which are payable in January 2019. That is why an increase settled in the autumn of 2018 is the increase people see in their 2019 payments.
- Does the 2019 COLA apply to Supplemental Security Income?
- Yes. Federal SSI payments also increase by 2.8 percent, effective for payments made for January 2019. 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 2019". That notice is the document this page cites, and it is where 2.8 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 2019 that computation gave 2.8 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 2.8 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 2.8 percent increase also settles other amounts for 2019, 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 2019 COLA compare with the year before?
- The increase for 2019 is 2.8 percent. The increase for 2018 was 2 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
Social Security's cost-of-living adjustment (COLA) is calculated by comparing the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the current year to the third quarter of the last computation quarter. The law requires SSA to determine the percentage increase, if any, between these two quarters. If the CPI has not increased from the last computation quarter to the third quarter of the current year, there is no COLA for the following year and benefits remain unchanged. When there is an increase, it is applied to benefits for all recipients who were eligible before that year. The COLA does not reflect inflation over the full calendar year but only over the specific comparison period between the two third-quarter averages.
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 2019 (SSA)
Only three months of the CPI decide it
Only three months of data determine the annual COLA. The Social Security Act specifies that the CPI for a computation quarter is the arithmetic mean of this index for the 3 months in that quarter. This means SSA takes the CPI-W values for July, August, and September, adds them together, divides by three, and rounds the result. The percentage change between this third-quarter average and the third-quarter average from the last computation quarter determines whether there is a COLA and how large it is. No other months of the year factor into the calculation. If the third-quarter average has not risen from the previous computation quarter, there is no increase in benefits for the following year. This narrow window means that inflation patterns in the rest of the year have no direct effect on the COLA determination. For 2019, the comparison was between the third quarter of the prior computation period and the third quarter of 2018, yielding a cost-of-living increase of 2.8 percent.
Section 215(i)(1) of the Act states that the CPI for a cost-of- living computation quarter is the arithmetic mean of this index for the 3 months in that quarter.
Cost-of-Living Increase and Other Determinations for 2019 (SSA)
It starts with December benefits, paid in January
When SSA announces a COLA, the increase does not take effect immediately. Benefits will increase by 2.8 percent beginning with benefits for December 2018, which are payable in January 2019. This means that although the increase is officially designated for the December benefit month, recipients actually see the higher amount in their January payment. Social Security benefits are always paid one month in arrears - the benefit for any given month is received the following month. The COLA applies to workers and family members for whom eligibility occurred before 2019. Those who first become eligible after 2018 do not receive the 2.8 percent increase, as they are already calculated using newer wage indexes that reflect more recent earnings levels.
benefits will increase by 2.8 percent beginning with benefits for December 2018, which are payable in January 2019.
Cost-of-Living Increase and Other Determinations for 2019 (SSA)
Working before full retirement age withholds part of the benefit
If you are under full retirement age (NRA) and receiving Social Security benefits, working while collecting benefits may result in a reduction of those benefits. For 2019, if you will reach full retirement age during the year, Social Security applies a special earnings test rule: for every $3 of earnings over the annual exempt amount earned in the months before you reach NRA, $1 in benefits is withheld. This higher exempt amount applies only to earnings in months before you attain NRA, and only in the year you reach that age. For all other beneficiaries under NRA who have not yet reached full retirement age in that year, a different (lower) exempt amount applies, with a different withholding ratio. The withholding is temporary: once you reach full retirement age, your benefits are no longer reduced due to earnings, and previously withheld amounts may be recovered through higher monthly payments going forward. This rule ensures that beneficiaries who continue working before reaching NRA understand how their earnings affect their benefit payments during the year they transition to full retirement age.
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 2019 (SSA)
The year you reach full retirement age has its own limit
In 2019, Social Security applies a special earnings test rule for beneficiaries who reach full retirement age (NRA) during that year. A higher exempt amount applies in the year in which a person attains NRA, but only for earnings in months before such attainment. This means that if you turn 66 or 67 (depending on your birth year) during 2019, you get the benefit of this higher exempt amount for the months leading up to your birthday month. Once you reach NRA, the earnings test no longer applies to your benefits, regardless of how much you earn. This higher exempt amount is more generous than the lower exempt amount that applies at all other ages below NRA. The distinction matters because it affects how much you can earn while still receiving your full benefit payment during the transition year to full retirement age. Understanding this rule helps beneficiaries plan their work and income in the year they reach NRA, knowing that the earnings limit is more favorable during that specific year and only for the months before they actually attain 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 2019 (SSA)
What earnings count as substantial gainful activity
To qualify for Social Security disability benefits, you must be unable to engage in substantial gainful activity (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 SGA amount is specified in the Social Security Act itself. For non-blind disabled individuals, the SGA amount is set by SSA regulations. The amounts are adjusted annually based on increases in the national average wage index. If you earn above the SGA threshold, SSA will generally determine that you are engaging in substantial gainful activity and therefore not disabled under the program's rules. The threshold is higher for blind individuals than for non-blind disabled individuals.
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 2019 (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 2019 (SSA)
- Cost-of-living increase
The cost-of-living increase is 2.8 percent for monthly benefits under title II and for monthly payments under title XVI of the Act.