2019 COLA Increase Largest Increase in 7 Years In 2012, the annual COLA increase was 3.6%. It has not come close to that again until the COLA that will be received by Social Security recipients and many federal retirees starting in January 2019. The COLA for 2019 is 2.8% according to the official announcement released by the Social Security Administration on October 11, 2018. It represents the biggest increase in seven years. The higher benefits will start on January 1st. Annual increases in Social Security and retirement annuities for many federal employees are determined each year based on changes in a component of the consumer price index. This component is called the CPI-W. There was a 2% cost -of-living adjustment in 2018 and an 0.3% adjustment in 2017. These annual increases are meant to keep up with inflation.
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