Social Security rounded down my COLA increase - losing 90 cents monthly, is this normal SSA practice?

Yes, SSA rounds benefit amounts down to the nearest dollar amount. It's in their procedures. It's frustrating but it's how they've operated for decades. I had the same reaction when I first started collecting my retirement benefits in 2019. My PIA calculation came out to $1,842.60 but my actual benefit was $1,842. Those pennies do add up over time!

mine does the same thing!! they always round down never up 🙄 my neighbor says its been that way since forever

The Social Security Administration does indeed round benefit amounts down to the nearest dollar as part of their standard calculation process. This is documented in their Program Operations Manual System (POMS). The specific procedure is that after all calculations are completed, including COLA increases, the final monthly benefit amount is rounded down to the nearest dollar. This is not an error or something you can appeal - it's simply how the system is designed to work. While I understand your frustration (those cents do add up over time), this is consistent policy applied to all beneficiaries. You're not being singled out or treated unfairly compared to others receiving Social Security benefits.

THEY TAKE EVERY PENNY THEY CAN FROM US!!! First they tax our benefits then they steal our pennies too. Been dealing with this for 11 years now and it never gets better. They're probably making MILLIONS off all our rounded down cents!!!

I noticed this too last year! I thought it was a mistake at first but when I finally reached someone at Social Security (took forever), they explained it's standard practice. My husband and I both have our benefits rounded down each month. Double the loss for us, lol. But yes, totally normal apparently.

If you're having trouble reaching Social Security about this or any other issues, I'd recommend trying Claimyr. I was struggling to get through to SSA for weeks about an overpayment notice and was getting nowhere. Claimyr got me connected to a live agent in about 15 minutes instead of the hours I was waiting before. You can see how it works in their video demo: https://youtu.be/Z-BRbJw3puU or check out their website at claimyr.com. Saved me a ton of frustration, though in your case it sounds like the rounding down is just standard procedure so you might not need to call after all.

My mom just went through this exact same thing!! She was so confused because her COLA notice said one thing but her bank deposit showed a different amount. I had to explain to her that SS always rounds down to the nearest dollar. She was NOT happy about it either! But from what I understand, this has always been their policy.

wait do they round down EVERY calculation or just the final number? cause if they round down multiple times during the math that would be even worse!!

I worked for 43 years and they're pinching pennies from me too! I did the math and I've lost over $140 in 13 years from this rounding nonsense. AND THEY WONDER WHY PEOPLE DON'T TRUST THE GOVERNMENT!!!

Just a practical tip - if this rounding issue bothers you, consider it when planning your claiming strategy. Since they always round down, if your calculated benefit would be $2,000.01 or $2,000.99, you'd get the same $2,000 payment either way. Sometimes delaying benefits by just a month can push you over to the next dollar in your monthly payment. It's a small difference, but over many years of retirement, an extra dollar per month adds up. This is especially relevant when deciding exactly which month to start benefits.

I had no idea about this rounding policy until I started receiving my disability benefits last year. My calculated amount was $1,456.73 but I only receive $1,456. At first I thought there was an error in my payment, but after reading this thread it makes sense now. It's frustrating that they don't explain this clearly in the benefit letters - they should mention that the final payment will be rounded down to the nearest dollar. Would save a lot of confusion and phone calls to SSA!

I'm dealing with the exact same thing! My COLA increase was calculated at $18.47 but I'm only getting $18.00 each month. It's such a small amount but it really adds up over time - that's almost $6 per year I'm missing out on. I appreciate everyone explaining that this is standard SSA policy, but it still feels unfair. When you're living on a fixed income, every penny matters. I wish they would at least be transparent about this rounding policy in their communications so people don't get confused like we did.

As a newer member of this community, I'm really grateful for all the detailed explanations here! I just started receiving my Social Security benefits a few months ago and noticed the same discrepancy between my benefit letter and actual deposit amount. Like many others, I initially thought it was an error and was planning to spend hours trying to get through to SSA. It's really helpful to learn that this rounding down policy is standard practice, even though it does feel frustrating when you're counting every dollar. The suggestion about timing your benefit application to potentially get over the next dollar threshold is brilliant - I wish I had known that before I filed! Thanks to everyone who took the time to explain the POMS documentation and clarify that this isn't something that can be appealed. This thread probably saved dozens of people from making unnecessary calls to an already overloaded SSA phone system. Really appreciate this community for sharing knowledge and helping newcomers understand these confusing policies!

I'm new to this community and just started receiving my first Social Security payments this year. Like so many others here, I was completely baffled when my actual deposit didn't match the amount on my benefit letter - mine was supposed to be $1,234.67 but I only received $1,234.00. I actually called my bank first thinking there was an error with the deposit! Reading through all these responses has been incredibly enlightening. I had no idea about the rounding down policy and honestly feel a bit silly for not knowing this was standard practice. It's reassuring to see I'm not the only one who found this confusing initially. The explanation about it being documented in the POMS manual is really helpful, and I appreciate everyone taking the time to clarify that this isn't an error or something that can be contested. While I understand this is just how the system works, I do wish SSA would include a simple note about this rounding policy in their benefit letters. It would save so many people the confusion and unnecessary stress we've all experienced. Thank you to this community for being such a great resource for understanding these policies!

I just joined this community and I'm so glad I found this thread! I recently started receiving Social Security disability benefits and had the exact same confusion everyone else is describing. My benefit calculation showed $892.45 but my actual monthly payment is only $892.00. At first I thought there was some kind of processing error or that they were deducting something they hadn't told me about. I spent weeks worrying about it before finally finding this discussion. It's such a relief to learn that this rounding down to the nearest dollar is just standard SSA policy, even though it does sting a little to lose those cents every month. I really appreciate everyone who took the time to explain the POMS documentation and clarify that this isn't something we can appeal or change. As a newcomer to the Social Security system, these kinds of detailed explanations from experienced community members are incredibly valuable. Thank you all for sharing your knowledge and helping those of us who are new to navigate these policies!

I'm new to this community and just started receiving my Social Security retirement benefits last month. Like so many others here, I was completely puzzled when my actual deposit was $1,567.00 instead of the $1,567.38 shown on my benefit letter. I actually printed out my bank statement and compared it multiple times thinking there had to be some mistake! This thread has been incredibly helpful in understanding that the rounding down policy is just standard SSA procedure. While I'm disappointed to be losing those 38 cents every month (that's over $4.50 per year!), at least I now know it's not an error that needs to be fixed. I really wish SSA would just add one simple sentence to their benefit notices explaining this rounding policy - it would save so many people the confusion and stress we've all experienced. As someone new to navigating the Social Security system, I'm grateful for communities like this where experienced members take the time to explain these policies that aren't always clear in the official documentation. Thanks everyone for sharing your knowledge!

I'm brand new to this community and just started receiving my Social Security benefits this month. Like everyone else here, I was totally confused when my deposit showed $2,156.00 instead of the $2,156.84 on my benefit letter. I actually called the SSA three times thinking there was a mistake with my account setup! Reading through all these responses has been such a huge help - I had no idea this rounding down policy even existed. It's honestly a bit frustrating to learn I'll be losing 84 cents every month (over $10 per year), but at least now I understand it's just how their system works and not some error I need to chase down. I really appreciate everyone taking the time to explain this so thoroughly, especially about the POMS documentation. As someone completely new to navigating Social Security, these kinds of detailed explanations from experienced community members are invaluable. It's clear this rounding policy catches a lot of new beneficiaries off guard - SSA really should mention it somewhere in their benefit letters to save people the confusion!

I'm new to this community and just started receiving my first Social Security payments a couple months ago. Like so many others here, I was initially confused when my actual deposit was $1,189.00 instead of the $1,189.52 shown in my benefit notice. I thought maybe there was some kind of processing fee or deduction I wasn't aware of! This entire thread has been incredibly enlightening - I had absolutely no idea about SSA's rounding down policy until reading everyone's experiences. It's reassuring to know this is standard practice and not an error, though I do wish they'd mention this somewhere in their communications. Losing 52 cents per month doesn't sound like much, but that's over $6 per year when you're trying to stretch every dollar. The tip about considering timing when filing for benefits to potentially get over the next dollar threshold is brilliant - I wish I had known that before I applied! Thank you to all the experienced members who took the time to explain this policy so thoroughly. This community is such a valuable resource for newcomers like me trying to understand all these SSA procedures that aren't always clearly documented elsewhere.