The Social Security Administration announced that the cost-of-living adjustment for 2019 will be 2.8%. This is the largest Social Security retirement benefit boost in seven years. The 2.8% increase raises the average Social Security benefit of $1,404 per month in 2018 by $39 next year.
Each year, the Social Security Administration assesses whether there should be an adjustment to benefits so that their purchasing power keeps up with inflation. The agency uses the Consumer Price Index for Urban Wage Earners and Clerical Workers, CPI-W, from the Bureau of Labor Statistics. Increases are thus linked to how much inflation the economy is exhibiting. The cost-of-living adjustment has been zero in some recent years like 2010, 2011, and 2016.
