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Update: Social Security Cost of Living Adjustment Is 2.0 Percent

This morning, the Social Security Administration announced a cost of living adjustment for 2018 of 2.0 percent.

This morning, the Social Security Administration announced a cost of living adjustment for 2018 of 2.0 percent. The figure was in our projected range of 1.7 to 2.1 percent, discussed in a more detailed report released earlier this week.

While these cost of living adjustments are based on an automatic formula using the CPI-W price index, and involve no human discretion, there may be a debate on the horizon about changing the system. President Trumpโ€™s tax plan hints at using the lower chained CPI to index tax brackets, rather than the current CPI-U. Some observers have speculated that this move would pave the way to also using the lower index for annual social security adjustments.



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