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Why COLA estimates are often wrong - The Motley Fool
You may have seen the headlines on the latest estimates for the 2026 cost-of-living adjustments (COLA); however, do you know how Social Security calculates it? COLAs are based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). CPI-Ws are calculated on a monthly basis by the Bureau of Labor Statistics; however, the only months that count towards calculating the COLA are July, August, and September (third quarter) each year. Those numbers are then compared to the CPI-W figures in the previous year’s third quarter. Dana George, writing for The Motley Fool, explains the five facts about Social Security COLAs. Read Ms. George’s article here…
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