Wednesday, October 22, 2014

Social Security COLAs (1975 to 2014)

The very first Social Security check (check number 00-000-001) was issued to Ida May Fuller in the amount of $22.54 and dated January 31, 1940.

(The charts below are from the St. Louis Fed) Historical Consumer Price Index for Urban Wage Earners and Clerical Workers. As you can see, inflation really began taking off ever since the 1970s.

Historical Consumer Price Index for Urban Wage Earners and Clerical Workers

Beginning in 1975, Social Security started automatic annual cost-of-living allowances (COLAs). The change was enacted by legislation that ties COLAs to the annual increase in the Consumer Price Index (CPI-W).

The chart below shows inflation since the Great Recession started in December 2007 to the present in October 2014. The chart depicts the small red square in the chart above. The only significant drop in inflation happened during the Great Recession (when apartment rents actually went down, instead of up.)

Consumer Price Index for Urban Wage Earners and Clerical Workers

Most recent SS COLAs:

1 comment:

  1. Social Security Benefits will Increase by 1.7% in 2015

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