Once benefits begin, Social Security payments increase each year by the announced COLA, applied directly to the current benefit amount.
How it works
Current monthly benefit times one plus the COLA percentage gives the new monthly benefit.
What this does not include
This doesn’t account for Medicare Part B premium increases, which are often deducted directly from Social Security payments and can offset some or all of a COLA increase in the actual net deposit received.
How to use this calculator
- Enter your current monthly benefit and the announced COLA percentage.
Frequently asked questions
How is the COLA percentage determined?
It’s based on the year-over-year change in the CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers), announced by the SSA each October for the following January’s payments.
Can COLA ever be negative?
No — by law, COLA is floored at 0%; if the underlying CPI-W measure were to decline, Social Security benefits would simply stay flat rather than decrease.
Does COLA apply to all Social Security benefit types?
Yes — retirement, spousal, survivor, and disability benefits all receive the same announced COLA percentage each year.
