Who Gets a Social Security COLA Raise Each Year

You get a COLA raise if you receive any Social Security benefit

COLA stands for Cost-of-Living Adjustment. If you receive Social Security retirement, disability, survivor, or Supplemental Security Income (SSI) benefits, you automatically get a COLA raise each year. You do not have to do anything to receive it — Social Security applies the increase to your benefit amount without a separate request.

The COLA is calculated once per year, in October, based on inflation data from the previous months. The new benefit amount takes effect the following January. The amount of the raise varies from year to year depending on how much prices have risen for things like food, housing, and utilities.

The only people who receive Social Security benefits but do not get a COLA are those who have not yet reached their first anniversary of receiving benefits. If you started benefits in January, you will receive your first COLA adjustment the following January.

Key Takeaways

Everyone who receives a Social Security benefit — retirement, disability, survivor, or SSI — gets a COLA raise each January without having to request it.
The COLA amount is announced in October and is based on inflation measured from July through September of that year.
Your first COLA raise comes one year after you start receiving benefits, so new beneficiaries do not receive an adjustment in their first year.
The COLA is the same percentage for all beneficiaries in a given year, though the dollar amount varies based on your individual benefit.

How Social Security calculates the COLA percentage

Social Security uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to measure inflation. This index tracks price changes for food, housing, transportation, medical care, and other goods and services that people buy regularly. The Social Security Administration compares the average CPI-W for July, August, and September of the current year to the same three months from the previous year.

If prices have gone up, the percentage increase becomes the COLA for the following year. If prices have stayed the same or gone down, there is no COLA that year — your benefit amount remains unchanged. This has happened a few times in recent decades, most notably in 2010, 2011, and 2016.

The announcement happens in October, and you can find the exact percentage on the Social Security Administration website. The new amount appears in your January benefit payment.

When your COLA takes effect

Your COLA raise arrives in your January benefit payment, regardless of when during the year you started receiving benefits. If you began collecting in March, your first COLA comes the following January — ten months later. If you started in November, your first COLA comes two months later in January.

The timing is the same for all beneficiaries. Everyone's new amount starts in January, and Social Security sends out notices in December showing what your new benefit will be. If you receive your benefit by direct deposit, the new amount will appear in your bank account on your regular payment date in January. If you receive a check, it will reflect the new amount.

COLA and SSI benefits work slightly differently

If you receive Supplemental Security Income (SSI) rather than Social Security retirement or disability, you still get a COLA raise, but the rules have one important difference. SSI has a federal benefit rate that increases with the COLA each year, but many states add their own supplement on top of the federal amount. Some state supplements also increase with the COLA, and some do not — this varies by state.

When your SSI COLA takes effect in January, check your benefit notice to see whether your state's supplement increased. If you live in a state that does not increase its supplement with the COLA, your total benefit will go up by a smaller amount than someone in a state that does. Contact your local Social Security office or your state's SSI program if you have questions about how the COLA affects your specific benefit.

What the COLA does and does not cover

The COLA is meant to help your benefit keep pace with inflation — the rising cost of everyday expenses. However, it is calculated based on the CPI-W, which measures average price increases across the economy. Your personal costs may rise faster or slower than the average. For example, if medical expenses or housing costs in your area have risen much faster than the national average, your COLA may not fully cover your actual increase in expenses.

The COLA also does not change the rules for how much you can earn while receiving benefits, the age at which you can claim, or any other may be able to access rules. It is purely an adjustment to the dollar amount you receive each month.

Checking your COLA amount before January

Social Security mails a notice in December showing your new benefit amount for January. This notice, called a "Notice of Benefit Amount," tells you exactly how much your COLA raise is and what your new monthly payment will be. If you have a my Social Security account online, you can also log in to see your benefit information, though the notice in the mail is the official record.

If you do not receive a notice by mid-December, contact Social Security at 1-800-772-1213 (TTY 1-800-325-0778) to confirm your new amount. Keep the notice for your records, as you may need it for tax purposes or to verify your income to other programs.

Frequently Asked Questions

Do I have to do anything to get my COLA raise?

No. Social Security automatically applies the COLA to your benefit each January. You do not need to contact them, fill out any forms, or take any action. The new amount straightforward appears in your January payment.

What if I just started receiving benefits — do I get a COLA right away?

No. Your first COLA comes one year after you start receiving benefits. If you began collecting in June, your first COLA adjustment will be the following January. After that, you receive a COLA every January.

Can the COLA go down, or does it only go up?

The COLA can stay flat — meaning no increase — if inflation is zero or negative. This happened in 2010, 2011, and 2016. However, your benefit amount cannot go down due to the COLA. If inflation is negative, your benefit stays the same as the previous year.

How much will my COLA raise be?

The COLA percentage is the same for all beneficiaries in a given year, but the dollar amount depends on your individual benefit. If your monthly benefit is $1,500 and the COLA is 3%, your raise is $45. If your benefit is $2,000, your raise is $60. Social Security will tell you the exact dollar amount in your December notice.

Does COLA affect my taxes or other benefits?

The COLA increase may affect how much of your Social Security is taxable if your combined income crosses certain thresholds. It may also affect your may be able to access for other programs like Medicaid or SNAP, since those programs count your income. Review any notices you receive from other programs after your COLA takes effect.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.