2018 Social Security Increase Calculator
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Reviewed by Calculator Editorial Team
Social Security benefits are adjusted annually for cost-of-living adjustments (COLA). The 2018 COLA was 2.0%, the smallest increase since 1982. This calculator helps you estimate your increased benefits based on your current monthly benefit amount.
How This Calculator Works
The Social Security Administration (SSA) calculates COLA based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The formula used is:
COLA Percentage = (CPI-W for December 2018 - CPI-W for December 2017) / CPI-W for December 2017 × 100
For 2018, the CPI-W increased by 2.0%, resulting in a 2.0% COLA. This calculator applies that percentage to your current monthly benefit to estimate your new benefit amount.
Note: This calculator provides an estimate. Actual benefits may vary based on your specific circumstances and when you started receiving benefits.
How COLA Is Calculated
The COLA calculation process involves several steps:
- The Bureau of Labor Statistics calculates the CPI-W for each month.
- The SSA compares the December CPI-W for the current year with the December CPI-W from the previous year.
- The percentage change is calculated using the formula above.
- The SSA rounds the percentage to the nearest 0.1%. If the result is 0.0%, no COLA is applied.
- Benefits are adjusted by the calculated percentage.
In 2018, the CPI-W increased by 2.0%, which was the smallest increase since 1982. This was due to a combination of factors including low inflation and the impact of the Tax Cuts and Jobs Act.
2018 COLA Increase
The 2018 COLA was 2.0%, the smallest increase since 1982. Here's how it affected different benefit levels:
| Current Monthly Benefit | 2018 COLA Increase | New Monthly Benefit |
|---|---|---|
| $1,000 | $20 | $1,020 |
| $1,500 | $30 | $1,530 |
| $2,000 | $40 | $2,040 |
| $2,500 | $50 | $2,550 |
| $3,000 | $60 | $3,060 |
For example, someone with a current monthly benefit of $1,500 would see their benefit increase by $30 to $1,530 after the 2018 COLA.
How to Use This Calculator
Using this calculator is simple:
- Enter your current monthly Social Security benefit amount in the calculator.
- Click the "Calculate" button.
- The calculator will display your estimated new benefit amount after the 2.0% COLA.
- Review the result and see how the COLA affects your benefits.
This calculator provides a quick and easy way to estimate your increased benefits without needing to visit the official SSA website.
Frequently Asked Questions
How is the COLA percentage determined?
The COLA percentage is based on the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from December of the previous year to December of the current year.
When will I receive the 2018 COLA?
The 2018 COLA was applied to benefits in January 2019. If you receive benefits in December 2018, you will receive your first payment with the COLA in January 2019.
How does the COLA affect my benefits?
The COLA increases your monthly benefit amount by the calculated percentage. For example, a 2.0% COLA on a $1,500 benefit increases it to $1,530.
Is the COLA the same for everyone?
Yes, the COLA percentage is the same for all Social Security beneficiaries. However, the dollar amount of the increase varies based on your current benefit amount.
Where can I find more information about COLA?
You can visit the official Social Security Administration website for more detailed information about COLA and Social Security benefits.