The Cost-of-Living Adjustment, also known as the COLA, is a critical component of determining how much people obtain from Social Security benefits, including Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Without it, these benefits would likely become quickly outpaced by growing costs for things like food, housing, and other basic expenses. But what exactly is the cost-of-living adjustment for Social Security, and how might it impact you?
What is the Cost-of-Living Adjustment (COLA)?
Put simply, the cost-of-living adjustment is a measurement of how much Social Security changes to compensate for increases in certain essential goods and services. This change happens automatically each year, without need for congressional action. The purpose of these changes is to ensure that Social Security benefits keep pace with increases in the cost of living, including disability benefits like SSDI and SSI.
How is the COLA Determined?
The COLA is determined using something known as the Consumer Price Index for Urban Wage Earners and Clerical Workers (also known as the CPI-W). This index measures changes in prices for a basket of certain essential goods and services, and how they change from year to year. As the CPI-W increases, the Social Security COLA increases to match it, ensuring that benefits scale with increased costs.
Why is the COLA Important?
The COLA is an essential part of Social Security because, without it, there would need to be congressional action every year to increase Social Security benefits. With the COLA in place, it ensures that people who receive Social Security retirement and disability benefits will not starve simply because of a growing cost of living. It also helps protect against political or economic instability that might otherwise make such changes difficult to institute otherwise.
How Does it Impact You?
If you are a recipient of Social Security benefits, including SSDI or SSI, or you are seeking those benefits, COLA is an essential assurance that your benefits will scale with time. If you are struggling to obtain disability benefits, or if you have been unjustly denied benefits, you should speak to a lawyer with experience handling Social Security disability claims. They can help review your case, and ensure you get the benefits you deserve.
If you or a loved one need assistance applying for SSDI or SSI benefits, it is important that you seek the guidance of an experienced Social Security Disability benefits lawyer. The lawyers at Sullivan & Kehoe, LLP have over 50 years of combined experience between its attorneys and are available to you or your loved one in obtaining Social Security Disability or Supplemental Security Income benefits. To schedule a consultation with our New York Social Security Disability benefits lawyers, call (631) 823-7155.
