Social Security's 2021 COLA: How Much of a Raise Should Beneficiaries Expect?

For more than eight decades, Social Security has been a financial rock for our nation's retired workforce. Today, just over 46 million of the 64.7 million beneficiaries are retired workers, with data from the Social Security Administration showing that 62% of these retirees lean on their payout to account for at least half of their monthly income. 

Given the importance Social Security holds for seniors' wallets, there's arguably not a more anticipated event than the October unveiling of the program's cost-of-living adjustment (COLA). Think of COLA as the "raise" that beneficiaries receive to account for the inflation they're contending with. It's not a raise in the true sense of the word since it's only designed to keep up with the rising price of goods and services. Nevertheless, it means more nominal cash in the pockets of Social Security recipients.

While news on the COLA home front has improved over the past couple of months, the raise that looks to be headed beneficiaries' way in 2021 could be one of the smallest in history.

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Source Fool.com