Why Is October Such a Big Deal for Social Security Recipients?
Social Security recipients anticipate October to learn more about how their finances will look for the following year.
Why Is October Such a Big Deal for Social Security Recipients?
Overview
The month of October -- specifically, mid-October -- matters to Social Security recipients because that's the time when the Social Security Administration (SSA) announces the cost-of-living adjustment (COLA) for the following year. COLAs are based on how inflation impacts everyday Americans, as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Image source: Getty Images.
Consider this: For a Social Security recipient with a $2,071 monthly benefit, a 3.9% increase will boost their payment by roughly $81. However, that's before taxes and Medicare premium increases are deducted.
Details
Source
Originally published at www.fool.com.
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