Adler Firm, PLLC
Free Consultation - Call 24/7

Social Security cost-of-living increase to be 1.7 percent

Social Security disability insurance, like Social Security itself, contains an annual cost-of-living adjustment. This year, however, the increase for inflation will be the smallest it has been since annual adjustments began in the mid 1070s.

The increase will be 1.7 percent, the Social Security Administration announced last week. The increase will take effect in January of next year.

The cost-of-living adjustment, often abbreviated COLA, is determined by using a formula based on the Consumer Price Index (CPI). Though the CPI was designed to measure inflation, the economy has experienced relatively little inflation recently.

The only exception to this has been energy costs. Overall, over the last twelve months, prices have gone up only 2 percent. Still, even in a low-inflation economy with mostly stable prices, 1.7 percent is not much of an increase.

The number of people who are affected is quite large. It does not only include retirees drawing Social Security and injured workers receiving SSD benefits. Those who get Supplemental Security Income (SSI) are also affected.

That brings the total number of people affected by the cost-of-living increase to about 66 million - 1 of every 5 Americans.

Of course, there is also some concern about the solvency of Social Security system in the long term. These issues have been raised repeatedly during the campaign for the upcoming election.

For many families, though, the most immediate concern is making ends meet right now. For injured workers, Social Security disability insurance plays a very important role in making that happen.

Source: "Social Security benefits to rise 1.7% in 2013," USA Today, 10-16-12

Our firm handles situations similar to those discussed in this post. To learn more about our practice, please visit our Social Security disability page.

No Comments

Leave a comment
Comment Information
Request A Free Consultation

Representing Michigan injured workers since 1979.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Traverse City Office
13561 S West Bay Shore Drive
Suite 301
Traverse City, MI 49684

Toll Free: 888-873-7173
Fax: 231-943-2299
Map & Directions

Farmington Hills Office
30300 Northwestern Highway
Suite 304
Farmington Hills, MI 48334

Map & Directions

Adler Firm, PLLC