The Social Security Administration recently announced that the cost-of-living adjustment for 2019 will be 2.8 percent which means larger social security checks next year for Arizona retirees.
Each year, the Social Security Administration assesses whether there should be an adjustment to benefits, so that their purchasing power keeps up with inflation. The agency uses the Consumer Price Index for Urban Wage Earners and Clerical Workers, CPI-W, from the Bureau of Labor Statistics.
This year's increase marks the biggest hike since 2012, when the cost-of-living adjustment was 3.6 percent.
For Arizona retirees who have recently elected to take Social Security benefits, this could be the first time they see a "real increase" in their monthly checks, Joe Elsasser, president of Covisum, a provider of Social Security timing software, previously told CNBC.
For those who are collecting an average Social Security benefit of about $1,400, the 2019 cost-of-living adjustment will amount to an extra $39 per month. In the past the boost from the Social Security cost-of-living adjustment has been eaten up for many by higher Medicare premiums. That is unlikely to happen to as many people this year as it did in 2018, according to Mary Johnson, Social Security and Medicare policy analyst at the Senior Citizens League.
If you’d like more information about the increasing social security checks, if you’re in the market to sell your Phoenix home, or if you’re ready to buy a home in an Arizona retirement community, please contact Sharon Mason today!