If you are thinking of relying solely on retirement social security control, you may reconsider. Here because.

The beneficiaries of social security will impute their biggest COLA in seven years starting in January.

Social security is undoubtedly the most of the nation, with data showing that 62% of aged beneficiaries rely on monthly payments to account for at least half of their income, the Center for Budget and Political Priorities finds that 22.1 million people, including 15 , 1 million seniors, are kept out of poverty thanks to their social security checks.

Wit For this, it is right that # 39; most important event of the year for these people is the announcement of the Regulation on the cost of living (COLA) (ie the "revival" that the beneficiaries will receive next year) from & # 39; Social Security Administration (SSA) during the second week of October. The announcement is just and will take place today, October 11th.

Understanding how the Social Security COLA is calculated

However, beneficiaries do not have to wait for the official announcement of the SSA to calculate their social security COLA for 2019. Once the Bureau of Labor Statistics (BLS) ) has published the data on inflation in September 2018, we have all the information necessary to determine how much the Social Security beneficiaries will increase next year.

You see, the inflationary bond of social security, the consumer price index for employees and clerical employees (CPI-W), takes into consideration only three months of inflation data rather than a whole year. The average reading of the CPI-W during the third quarter of the previous year (from July to September) serves as a reference figure, while the average reading from the third quarter of the current year is the comparison. The BLS takes a good week to fill in all the data related to the main categories of expenditure and subcategories of the CPI-W, which is why the release of the data will not be published until the second week of the following month.

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If the average third-quarter reading of the current year goes up by reading the CPI-W average of the previous year, the beneficiaries receive a increase that is commensurate with the percentage increase, rounded to the nearest 0.1 percent. And if prices fall from year to year, as happened in 2010, 2011 and 2016, the benefits remain static from one year to the next

The good news for beneficiaries is that prices increase year by year. . . Let's take a dip to give an accurate look at how the Social Security COLA of 2019 was determined.

(Photo: Getty Images)

Here is your COLA on social security 2019 [1965902] We begin with the drafting of three important CPI-W readings of the third quarter of 2017 that form the reference figure. [19659023] July 2017 CPI-W: 238.617
  • August 2017 CPI-W: 239.448
  • September 2017 CPI-W: 240.939
  • If these figures are added up and divided by three (given that there are three months taken into consideration), then the average CPI-W reading stands at 239.668.

    With the release of the CPI-W data of September today (October 11), we now have the last piece of the puzzle to calculate the comparison for 2018.