What are cost of living adjustments (COLAs) for Social Security payments?
Social Security payments, as well as many labor agreements, have regular “cost-of-living adjustments.” Commonly referred to as “COLAs,” they re designed to prevent inflation from devouring an ever-growing piece of your income and savings. COLAs for Social Security recipients are based on increases in the government s Consumer Price Index. The government calculates the CPI increase every fall and then raises every recipient s check in January.
