Cost of Living Adjustments to Social Security Benefits
How will cost of living adjustments impact my social security benefits?
In January of every year, the benefits paid out to individuals for social security disability or
supplemental security income, among others, are adjusted to stay in pace with inflation. If the social security payments that are made out to millions are not adjusted, the effects could be devastating for families and individuals alike who no longer have the financial support necessary to pay their bills or provide for food, clothing and appropriate shelter. Since these costs of living adjustments have been put into effect, these individual can have the peace-of-mind in knowing that their benefits will not be outrun by inflation and that they will continue to be able to provide for themselves and their loved ones.
Cost of living adjustments are generally modest, although jumps in inflation have been known to substantially increase overall benefits. The most recent cost of living adjustment applied to social security recipients was 3.6 percent in January of 2012, and is based on information in the Consumer Price Index for Urban Wage Earners and Clerical Workers. This adjustment first took effect in 1975 and has provided an excellent means of keeping social security disability recipients in pace with the steadily rising costs brought about by inflation.
Resolving Cost of Living Adjustment Errors
It is relatively easy for mistakes to happen due to the many millions of recipients that receive social security disability and SSI benefits from the federal government. If the annual cost of living adjustment was not applied to your benefits, or if an incorrect amount was applied, immediately consult a lawyer with Disability Action Advocates. We have extensive knowledge in the arena of social security, and have represented thousands on a wide variety of matters including clerical errors that result in issues like overpayment.