Social Security Report

Q & A

What’s a COLA and why does it matter to you?

Answer: The rising costs of food, gas, electricity and health care can strain anyone’s budget. The situation is even worse if your living expenses increase while your income stays the same, because your purchasing power will steadily decline over time. That’s why cost-of-living adjustments, or COLAs, are especially valuable to retirees and others living on fixed incomes. How COLAs work: A COLA is an increase in regular income you receive (such as a Social Security or pension benefit) that is meant to offset rising prices. It’s important protection because price inflation has occurred almost every year in the last 40 years. (Data Source: Bureau of Labor Statistics). Read more.

Source: The Community Voice - August 23, 2013

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