The Social Security cost-of-living adjustment (COLA) is a yearly increase in Social Security benefits that is intended to keep pace with inflation. The COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures the change in prices for a basket of goods and services purchased by urban wage earners and clerical workers. In 2023, the COLA was 8.7%, the largest increase in 40 years. For 2024, the COLA is projected to be 5.8%. The COLA is an important part of Social Security, as it helps to ensure that beneficiaries can keep up with the rising cost of living. Without the COLA, Social Security benefits would lose value over time, as inflation would erode their purchasing power.
There is a subreddit on Reddit called r/SocialSecurity where people can discuss Social Security-related topics, including the COLA. The subreddit has over 100,000 members and is a valuable resource for people who want to learn more about Social Security. In 2025, the COLA is expected to be around 3%. This is a lower increase than in recent years, but it is still important for beneficiaries. The COLA will help to ensure that beneficiaries can keep up with the rising cost of living and maintain their quality of life.
