How COLAs Are Calculated -- and Why the Formula May Not Reflect What You Actually Pay
Fixing this could help seniors' Social Security benefits go further.
Overview
If you've been on Social Security for a few years, you've probably settled into a familiar pattern: You eagerly anticipate the next year's cost-of-living adjustment (COLA), but when the benefit boost arrives, you don't feel like you're actually getting ahead, or even keeping up with where you were. So you set your sights on the next year's COLA, hoping that one will be better.
You're not alone in doing this, and you're not imagining things, either. There's a real reason your COLAs don't seem like they're keeping pace with your expenses, and it has to do with how the Social Security Administration calculates them in the first place.
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Details
Source
Originally published at www.fool.com.