Cost of Living Allowance 2019 Calculator

The Cost of Living Allowance (COLA) is an adjustment made to Social Security benefits to account for inflation. In 2019, the COLA was 1.6% for most beneficiaries. This calculator helps determine the COLA amount based on your current benefit and the inflation rate.

What is Cost of Living Allowance (COLA)?

The Cost of Living Allowance (COLA) is an annual adjustment to Social Security benefits to help recipients keep up with inflation. It's calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

COLA adjustments are typically announced in October and applied to benefits in December. The amount varies each year depending on inflation rates. In 2019, the COLA was 1.6% for most beneficiaries.

Note: COLA amounts are rounded to the nearest 0.1%. If the calculation results in a fraction of a percent, it's rounded to the nearest tenth.

How to Calculate COLA

To calculate your COLA adjustment, you need to know your current Social Security benefit amount and the applicable inflation rate. The formula is straightforward:

COLA Formula

COLA Amount = (Current Benefit × Inflation Rate) / 100

Where:

Current Benefit - Your current monthly Social Security benefit
Inflation Rate - The percentage increase in the CPI-W from the previous year

The result is your monthly COLA adjustment. When added to your current benefit, it gives your new benefit amount after the COLA adjustment.

Worked Example

Let's say you currently receive $1,500 per month in Social Security benefits and the 2019 inflation rate was 1.6%.

COLA Amount = ($1,500 × 1.6) / 100 = $24

Your new benefit would be $1,500 + $24 = $1,524 per month.

This example shows how a 1.6% COLA adjustment increases your monthly benefit by $24.

FAQ

How often is COLA adjusted?

COLA is adjusted annually, based on the CPI-W. The adjustment is typically announced in October and applied to benefits in December.

What if my COLA is less than 1%?

If the calculated COLA is less than 1%, you may receive a partial adjustment or no adjustment at all. The minimum COLA is 0%.

Can I get COLA if I'm still working?

Yes, you can receive COLA even if you're still working. Your COLA is based on your primary insurance amount (PIA), not your current earnings.

How is the inflation rate determined?

The inflation rate is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), published by the Bureau of Labor Statistics.