New COLA Increases Social Security Benefit by 2.8 Percent in 2019

An accomplished financial advisor, Darcy Bergen is founder and president of Bergen Financial Group in Peoria, Arizona. Darcy Bergen and his associates offer advice on effective investment strategies, wealth management, and retirement planning.

People who reach the age of 55 gain full access to their Social Security retirement benefits. The Social Security benefit is calculated based on an individual’s average lifetime earnings, multiplied by an index factor that represents changes to actual earnings per year. The resulting amount also may change if an individual decides to advance the benefits before retirement age or delay them after, if they receive a pension from government work and didn’t pay Social Security taxes on income, or if they are eligible for a cost-of-living adjustment.

The surge in the new cost of living adjustment (COLA) has also resulted in an increase in the average Social Security retirement benefit by 2.8 percent, which will take effect at the beginning of 2019. This increase will help more than 62 million beneficiaries. Starting in December 2018, those entitled to their Social Security retirement benefit will be notified by mail about the new amount they will receive in January 2019.

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