3 Things All Retirees Need to Know About Social Security's Next Cost-of-Living Adjustment (COLA)
If that raise is important to you, these are some key things to be aware of.
Overview
There are many people who end up collecting Social Security for 10 years, 20 years, or longer. And for seniors in that boat, Social Security's annual cost-of-living adjustments, or COLAs, are a big deal.
The purpose of Social Security COLAs is to help benefits keep up with inflation. If benefits were to stay the same for decades, Social Security recipients would be guaranteed to lose out on buying power. Instead, benefits are automatically eligible for an increase each year that's directly tied to inflation.
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Source
Originally published at www.fool.com.
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