Social Security payments go up once a year, usually in January, based on a measure called the Cost-of-Living Adjustment (COLA)

The Social Security Administration calculates a COLA each year using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which tracks inflation in prices for food, housing, energy, and other goods. If inflation has risen since the last adjustment, your benefit amount increases by that same percentage. If there is no inflation or prices have fallen, there is no raise that year — this has happened three times since 2000.

The COLA is announced in October and takes effect the following January. Your new payment amount appears in your January benefit, and the Social Security Administration sends a notice in December showing what your new monthly amount will be. You do not need to do anything to receive the raise — it happens automatically if you are already receiving benefits.

The size of your raise depends on two things: the inflation rate that year, and your current benefit amount. A person receiving $1,500 per month and a person receiving $3,000 per month will both get the same percentage increase, so the person with the higher benefit receives a larger dollar amount.

Key Takeaways

  • Social Security payments increase once per year in January based on inflation measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers.
  • The COLA percentage is announced in October and applies automatically to all current beneficiaries starting in January.
  • You will receive a notice in December showing your new payment amount; no action is required on your part.
  • The raise is the same percentage for all beneficiaries, but the dollar amount depends on what you currently receive.
  • In years when inflation is zero or negative, there is no COLA and your payment stays the same.

When the COLA is announced and how it is calculated

The Social Security Administration announces the COLA in mid-October each year. The announcement is based on data from the third quarter (July, August, and September) of that year. The calculation compares the average CPI-W for those three months to the average for the same three months in the previous year. If prices have risen, the percentage increase becomes your COLA.

The CPI-W measures price changes for a specific group: urban wage earners and clerical workers. It does not measure inflation for all Americans — for example, it does not focus on retirees' spending patterns. This is why some people argue the COLA does not fully reflect the costs seniors actually face, particularly for healthcare and housing. However, this is the measure Congress chose when it created automatic adjustments in 1975, and changing it would require new legislation.

Once the COLA is set, it applies to all Social Security beneficiaries the same way. Retired workers, disabled workers, and survivors all receive the same percentage increase. The only exception is Supplemental Security Income (SSI), which is a separate program with its own rules, though it typically receives the same COLA.

What your new payment amount will be

Your January payment will be your previous monthly amount multiplied by (1 + the COLA percentage). For example, if you received $1,800 per month and the COLA is 3.2 percent, your new payment would be $1,800 × 1.032 = $1,857.60.

The Social Security Administration rounds the result to the nearest dime. This means some beneficiaries receive slightly more or slightly less than the exact calculation, but the difference is small. The notice you receive in December will show the exact new amount.

Your raise applies only to your Social Security benefit. If you also receive a pension from a job where you did not pay Social Security taxes — such as a government job — that pension may be reduced by a different formula called the Government Pension Offset or Windfall Elimination Provision. Those reductions do not change based on the COLA.

How to find out your new payment amount before January

The Social Security Administration mails a notice called the "Social Security Benefit Statement" to all beneficiaries in December. This notice shows your new monthly payment amount starting in January. If you have a my Social Security account at ssa.gov, you can also log in to see your new benefit amount after the COLA is announced in October.

You can create a my Social Security account online at ssa.gov if you do not already have one. The account lets you view your benefit amount, your earnings record, and your payment history. You can also change your direct deposit information or contact preferences through the account.

If you do not receive a notice in the mail and do not have an online account, you can call Social Security at 1-800-772-1213 to ask about your new payment amount. Have your Social Security number ready when you call.

Years with no COLA or very small increases

In 2010, 2011, and 2016, the COLA was zero percent because inflation was flat or negative during the measurement period. Beneficiaries received no raise those years. This is rare but has happened three times in the past two decades.

In other years, the COLA has been very small — less than 1 percent. In 2017, the COLA was 0.3 percent, which meant a person receiving $1,500 per month received a raise of only $4.50 per month. While small, these increases still matter over time, and they are automatic.

The COLA is set by a formula, not by a decision or vote. Congress cannot choose to give a larger or smaller raise in any particular year. The only way to change how the COLA is calculated would be to pass new legislation that changes the formula itself.

How COLA affects Medicare premiums and other deductions

Your Social Security payment may not increase by the full COLA amount if you pay Medicare premiums from your benefit. Medicare Part B premiums are deducted from Social Security payments, and those premiums can increase faster than your COLA. In years when Medicare premiums rise sharply, your net increase (the amount you actually receive) can be smaller than the COLA percentage, or even zero.

This situation is called "hold harmless" protection. If your Medicare premium increase would reduce your net benefit below what you received the previous month, Social Security holds your payment flat and Medicare absorbs the difference instead. This protects you from a net loss, but it also means your benefit does not grow as much as the COLA would suggest.

Other deductions from your Social Security payment — such as taxes withheld, child support orders, or overpayment repayments — do not affect the COLA calculation itself, but they do reduce the amount you take home.

What happens if you are not yet receiving Social Security

If you have not started receiving Social Security yet, the COLA does not affect you directly. However, the COLA does affect the calculation of your future benefit. Social Security uses your highest 35 years of earnings to calculate your benefit amount. Those earnings are adjusted for inflation using a wage index, which is different from the COLA.

When you start receiving benefits, your first payment will be based on your earnings record and your age at the time you claim. The COLA will then apply to your benefit each January going forward. Claiming at a younger age results in a smaller monthly payment, but you receive payments for more years. Claiming at an older age results in a larger monthly payment, but you receive fewer payments overall.

Frequently Asked Questions

Can I get a larger Social Security raise if I ask for one?

No. The COLA is set by a formula based on inflation and applies to all beneficiaries the same way. You cannot request a larger increase, and Social Security cannot give you one. The only way to increase your benefit is to delay claiming (if you have not started yet) or to work and earn more income that gets added to your record (if you are still working).

What if I think the COLA does not cover my actual costs?

Many people feel the COLA is too small relative to their expenses, particularly for healthcare and housing. This is a policy question that would require Congress to change the formula. You can contact your elected representatives to express your views, but the COLA itself cannot be changed by individual request or appeal.

Do I have to pay taxes on my Social Security raise?

Whether your Social Security is taxable depends on your total income, not on whether you received a raise. If your combined income (Social Security plus other income) exceeds certain thresholds, part of your benefit may be subject to federal income tax. The COLA increase does not change this rule, but it may push your total income over the threshold if you were close to it.

Will my COLA be different if I am receiving benefits as a spouse or survivor?

No. All Social Security beneficiaries receive the same COLA percentage, regardless of whether you are receiving as a retired worker, disabled worker, spouse, or survivor. The percentage is the same, though the dollar amount depends on your individual benefit amount.

What if I missed the December notice about my new payment?

You can check your new payment amount through your my Social Security account at ssa.gov, or you can call 1-800-772-1213. The new amount takes effect in January regardless of whether you receive the notice, so you will see it in your first January payment.