Social Security adjustment less than a 2 percent increase

Millions of Americans who rely on government benefits will see very low pay increases at the beginning of the year.

But don't get excited, the estimated adjustment will account for an average around $20 a month.

It's estimated the annual cost-of-living adjustment for more than 70 million Social Security recipients, disabled veterans, and federal retirees will be less than 2 percent.

That increase translates to about $20 a month, and is based on inflation.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the last year a cost of living adjustment (COLA) was determined up to the third quarter of the current year. If there is no increase, there can be no cost of living adjustment.

The CPI-W is determined by the Bureau of Labor Statistics in the Department of Labor. By law, it is the official measure used by the Social Security Administration to calculate cost of living adjustments.

For more information you can visit the SSA website here.