Social Security Cost of Living Adjustment

In General
  Individuals receiving both Social Security Disability Benefits (SSD) and Supplemental Security Income (SSI) will see an increase in benefits this month.  The Social Security Administration has announced that it will increase these benefits by 1.7%. This 1.7% is a cost-of-living adjustment, sometimes called a COLA.  The increase in benefits to SSI recipients will begin as of December 31, 2012, and those receiving SSD benefits will begin as of January 2013.
 The purpose in the COLA is to ensure the purchasing power of SSD and SSI benefits is not eroded by inflation. The COLA is based upon the percentage increase in the consumer price index for urban wage earners and clerical workers. This index is based upon the third quarter of the 2012 year.  In years that there is no increase, there is no cost-of-living adjustment.
This is good news for those on Social Security Disability as well as those receiving Supplemental Security Income.