Government to announce Social Security COLA; preliminary numbers suggest it will be small

Economic Indicators Associated Press

Millions of older Americans who rely on government benefits are about to find out how much their monthly payments will increase next year.

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Preliminary figures suggest the annual cost-of-living adjustment for Social Security recipients, disabled veterans and federal retirees will be less than 2 percent.

That translates to a raise of about $20 a month for the typical Social Security beneficiary.

The government is scheduled to announce the increase Wednesday morning, when it releases the latest measure of consumer prices.

By law, the increase is based on inflation, which is well below historical averages so far this year.

More than 70 million people receive benefits affected by the annual increase.

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The average monthly Social Security payment is a little less than $1,200 a month.