The Cost-of-Living Adjustments (COLAs) for Social Security benefits are calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Recent changes in CPI-W numbers have prompted reevaluations of future projections for COLAs, with warnings from organizations like The Senior Citizens League. Retirees should be aware that while these adjustments are designed to counter inflation, they may not effectively cover the rising cost of living, potentially jeopardizing financial stability during retirement.
COLAs are not actually keeping up with inflation very well, leading to potential financial strains for retirees despite the adjustments meant to help maintain their lifestyle.
The announcement of each year's COLA is a pivotal moment for retirees, as it determines the anticipated increase in their monthly Social Security income.
Collection
[
|
...
]