If you’re a retiree who is receiving benefits from Social Security, you can look forward to a sizeable payout increase in 2019. It will be, in fact, the largest payout increase for retirement benefits in seven years.
As of Thursday morning, it’s official: Social Security retirement benefits will be increasing for 2019. The increase will be 2.8% next year, in accordance with the Social Security Administration’s annual cost-of-living adjustments. This is the largest increase in seven years — payouts were increased by 3.6% in 2012.
For comparison’s sake, the average payout in 2018 was $1,405 per month. This increase would increase the average by $39 a month, or $472 over the course of 2019. This increase follows a 2% increase in 2018, and a 0.3% payout increase in 2017 for the 60 million American beneficiaries.
Each year the Social Security Administration uses the Consumer Price Index for Urban Wage Earners and Clerical Workers to determine how inflation has affected the cost of living, and retirement benefit payouts are subsequently adjusted. Things like rising costs of food, gasoline, and health care all helped contribute to a retirement payout increase for 2019.
It’s important to remember that those receiving retirement benefits do not always receive more money year after. In 2016, 2011, and 2010 there was no benefit increase for retirees.