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25.06.2024 09:44:00

The Latest COLA News Could Be a Big Disappointment to Retirees

Many seniors depend on their Social Security checks to provide a good portion of their retirement income. This is why cost of living adjustments (COLAs) are so important. COLAs are periodic benefits increases applied to Social Security benefits so they don't lose buying power. Without them, retirement checks would lose a bit of their value (and sometimes a lot of their value) each year as a result of inflation.For the past few years, retirees have received generous COLAs, with benefits increasing 3.2% in 2024, 8.7% in 2023, and 5.9% in 2022. That's very likely to change next year.In fact, projections for the 2025 COLA have been lower for a while, and retirees just got even more bad news about their benefit increase that's sure to lead to disappointment.Continue readingWeiter zum vollständigen Artikel bei MotleyFool

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