Millions of older Americans whose budgets have been squeezed by inflation are due for a raise of sorts when the Social Security Administration announces its annual cost-of-living adjustment Thursday. The boost in monthly benefits, known as the COLA, is expected to be the highest in four decades and will go into effect in January.
What is a Social Security cost-of-living increase?
The Social Security Administration has adjusted benefits payments annually for inflation since 1975 to ensure the approximately 70 million retirees and disabled people who receive Social Security won’t see their benefits eroded by inflation.
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