This Is the Average Social Security Cost-of-Living Adjustment (COLA) Over the Past 10 Years. How Will 2025's Compare?
Many retired Americans get the bulk of their monthly income from Social Security. For people in this boat, annual cost-of-living adjustments, or COLAs, are extremely important.
The purpose of Social Security COLAs is to help beneficiaries maintain their buying power as inflation drives the cost of living upward. Retirees with nice amounts of savings don't have to worry about COLAs as much as those who are reliant on Social Security for the majority of their basic expenses. But even people who have outside income appreciate it when their Social Security benefits get a nice lift from one year to the next.
Image source: Getty Images.
Source Fool.com
