How does a Social Security COLA work? - Forbes Advisor
The purpose of the Cost-of-Living Adjustments, COLA, is to ensure that the purchasing power of Social Security and Supplemental Security Income (SSI) benefits is not eroded by inflation. Congress enacted the COLA provision as part of the 1972 Social Security Amendments, and automatic annual COLAs began in 1975. Before that, benefits were only increased when Congress enacted special legislation. So how are they calculated? How do they work? What if the COLA is not large enough to preserve my purchasing power? Kat Tretina and Benjamin Curry explain how COLA works, how you get your COLA increase, and what to do if it is not large enough in their article for Forbes Advisor. Read Ms. Tretina and Mr. Curry’s article here…