"Social Security's Cost of Living Adjustment (COLA) is crucial for retirees to maintain their buying power. The COLA helps to ensure benefits keep pace with inflation by increasing monthly Social Security benefits based on changes to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Specifically, third-quarter CPI-W data is considered when determining how much the COLA will be."
"Lawmakers have voted to end the government shutdown, and even when it was in effect, Social Security benefits were still distributed to retirees. Benefit checks are not typically interrupted when the government does because they are essential spending, and because Social Security payments are funded from revenue from current workers as well as from the program's trust fund, rather than from the general fund."
The COLA increases monthly Social Security benefits based on CPI-W changes, using third-quarter CPI-W data to set the adjustment. The longest government shutdown in history caused the COLA announcement to be delayed until October 24, 2025. Despite the delay in the announcement, Social Security benefits continued to be distributed during the shutdown because they are essential spending funded by current-worker revenue and the program's trust fund rather than the general fund. Lawmakers have ended the shutdown, the necessary data are now available, and retirees are expected to receive the COLA at the normal scheduled time.
Read at 24/7 Wall St.
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