Hoping for a Generous Social Security COLA in 2025? Here's Why You Actually Don't Want Such a Large Raise
The monthly benefit you start out collecting from Social Security won't necessarily be the monthly benefit you receive for life. That's because years ago, lawmakers decided that Social Security should be eligible for automatic cost-of-living adjustments, or COLAs.
The purpose of Social Security COLAs is to help seniors maintain their buying power as inflation drives the cost of living upward. Many seniors end up retiring on Social Security alone, so having a system in place for benefit increases is crucial.
Image source: Getty Images.
Source Fool.com