US government to announce Social Security COLA

Millions of older US citizens receiving government benefits sill soon know how much their monthly payments will rise in 2015. Over 70 million American receive benefits and will be affected by the annual increase.

The government will announce the increase on Wednesday morning, along with the latest measure of consumer prices.

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

This would translate into an increase of roughly $20 per month for the average Social Security beneficiary.

The increase in government benefits is based on inflation by law, with legislation enacted in 1973 provides for cost-of-living adjustments, or COLAs. Prior to 1975, Social Security benefit increases were set by legislation.

This year inflation has been far lower than historical averages.

Currently the average monthly Social Security payment is a bit lower than $1,200 per month.