This information has been updated and the projection is now closer to 1%. Click on the Social Security category on the right side for more recent information.
Well it’s too early to tell for sure, but right now we are on track for an increase of 1.7%.The actual increase will be based on the average CPI-W index for the third quarter of 2012 compared with the same quarter in 2011. The average for 2011 was 223.2337. As of April 2012 the average was 227.012. For the month of April the index increased 0.3 percent.
If, and it’s a big if, the average CPI-W for July, August and September 2012 turns out to be 227.012, the calculation for the Security COLA would be 227.012 – 223.2337 = 3.7783/223.2337 for an increase of 1.69253 or 1.7%.
Unless we experience deflation between May and October which is unlikely, the 2013 Social Security COLA will be 1.7% or higher. For the person receiving the average monthly Social Security benefit ($1230 at the beginning of 2012), that is an increase of $20.91.