The Social Security Administration announced a 2% cost-of-living adjustment (COLA) for 2018. This is the highest increase since 2012 partly because Hurricanes Harvey and Irma caused a jump in gas and other prices in September. The yearly COLA amount is based on increases in the Consumer Price Index which measures the cost of inflation for goods, but not health care. Most people receiving Social Security are retired or disabled. For most, health care is their biggest expense, and it is one of the fastest rising costs in America. The average Social Security check in 2017 was $1,377 a month. Next year's increase will raise the average payment by $27. For most beneficiaries, this increase will be offset by increases in Medicare premiums.
Increases will go into effect on the first check in January of 2018.