Cost of Living Adjustment (COLA)

Cost-of-Living Adjustments (COLA) for Social Security recipients was enacted through legislation in 1973. The goal was to keep pace with inflation for Social Security Disability, Supplemental Security Income, and Social Security (retirees) recipients. Each October, the Social Security Administration (SSA) announces a percentage increase for the following year; to be payable starting with January payments.

COLA is calculated based on the Consumer Price Index (CPI-W) from the 3 quarter of the year prior to third quarter of the year current. For example, the 2025 Cost-of-Living Adjustment was created based on the CPI from Quarter 3 of 2023 through the end of Quarter 3 2024. If there is no increase, there can be no adjustment to cost of living. The CPI-W is determined by the Bureau of Labor Statistics in the Department of Labor.

Back to glossary

Need Help?

At Advocator Advantage, a Brown & Brown Company, we are committed to helping individuals navigate the complexities of Social Security Disability Insurance (SSDI), Medicare, and the Ticket to Work program.

Have questions?

At Advocator Advantage, we understand that navigating SSDI, Medicare, and the Ticket to Work program can be complex and overwhelming. That’s why we’re here to address any questions or concerns you may have along your journey.