Cost of Living Adjustments Don't Pack the Same Punch if You Claim Social Security Early
Cost of living adjustments (COLAs) are periodic raises Social Security beneficiaries receive. These COLAs are vital to the financial security of retirees, many of whom depend on Social Security as a major source of retirement income. Without the adjustments, the value of benefits would fall rapidly due to inflation.
Unfortunately, if you've claimed your Social Security benefits early, COLAs will be smaller in terms of the added dollar amount you get each year. Here's why.
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Source Fool.com
