Social Security is not a set amount. Benefits can change from year to year. According to an article by The Motley Fool, “beneficiaries typically receive an annual adjustment in their benefits to help keep up with rising costs, known as the cost-of-living adjustment, or COLA.”
While that’s fairly common knowledge, there are aspects of how COLA works that most people don’t understand. The first is that Social Security COLAs are only based on third-quarter inflation. The COLA calculator only takes into account three months of inflation data – July, August, and September – and compares them with the same three months from the previous year.
The second fact is that Social Security COLAs use the CPI-W rather than the CPI-E. It might seem strange, but Social Security retirement benefits are calculated using an inflation metric that tracks cost increases for working Americans, rather than one focused on seniors and their unique expenses, such as healthcare.
Council of Seniors Wants Retirees to Get the Money They Deserve
All of us here at the Council of Seniors are working hard to get Congress to pass The SAVE Benefits Act. This crucial bill will put $581 back in seniors’ pockets to make up for Social Security cost-of-living adjustments (COLA) that were far too low for years.
Greedy Washington politicians are using retirees’ hard-earned money in other ways, but we’re dedicated to giving it back to those who are rightfully entitled to it.Please take a moment and sign our petition today to show your support.