Seniors Just Got a Big Clue on Social Security's 2027 COLA
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Seniors Just Got a Big Clue on Social Security's 2027 COLA
Overview
One of the most important aspects of Social Security is the program's annual cost-of-living adjustments, or COLAs. There are many seniors who collect Social Security for decades. If benefits weren't eligible for an inflation adjustments, retirees would be pretty much guaranteed to lose out on buying power over time.
Instead, Social Security benefits are eligible for a raise each year in line with inflation. When there's an increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from one year to the next during the third quarter of the year, Social Security benefits increase automatically. Congress does not have to vote in a raise like it used to decades ago.
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Originally published at www.fool.com.
