The Latest Inflation Update Offers Incredible News for Social Security's 2027 COLA
The first of three puzzle pieces used to calculate Social Security's annual raise was just announced.
Overview
Today, Aug. 12, is an especially important day for Social Security's more than 71 million traditional beneficiaries (i.e., retired workers, workers with disabilities, and survivor beneficiaries). The July inflation report, released earlier today, is the first of three puzzle pieces used to calculate the upcoming year's cost-of-living adjustment (COLA).
Social Security's COLA is essentially an annual "raise" given to recipients to offset the effects of inflation (rising prices). If monthly payouts remained static from year-to-year and the cost of goods and services continued to climb, beneficiaries would lose buying power over time. Social Security's COLA attempts to counteract this loss of purchasing power.
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Originally published at www.fool.com.