Receiving Social Security benefits? You may have heard rumors that this year’s Cost of Living Adjustment (COLA) will be a big one! We are still waiting for the exact number to be announced, but estimates are saying it will be the largest increase since 1982.
How is the COLA calculated? Since 1975, Social Security benefit increases have been based on cost of living adjustments using the Consumer Price Index for Urban Wage Earners and Clerical Workers. This is a formula to increase benefits annually, to account for the increase in food, shelter, medical care, and other important goods and services. Watch for a COLA announcement next month!