Five Facts You Need to Know About the Social Security COLA

Social Security cost-of-living adjustments (COLAs) are designed to ensure that recipients’ benefits keep pace with inflation. According to an article by The Motley Fool, when inflation increases, COLA can help beneficiaries maintain their purchasing power.

Because of its importance, the reporter compiled a list of five important facts everyone should understand about COLAs. These range from why the COLA is announced in October to why an increase is not guaranteed and why retirees are not the only ones counting on a big COLA this year.

The Seniors Trust is committed to improving the well-being of older Americans. This will be done financially through the passage of the Social Security Expansion Act. When enacted, it will give retirees an immediate benefits increase of about $200 a month, a fair annual COLA, increased minimum benefits, and ensure the long-term solvency of the Social Security program.