Troubling News From Social Security's Trustees Means a Big COLA Problem Probably Won't Be Fixed Anytime Soon
Social Security retirees receive a cost-of-living adjustment (COLA) to their retirement benefits in most years. This is meant to help them maintain their buying power even as prices go up. Without these COLAs, retirees would be able to afford less and less each year since costs don't just stay stagnant.
Unfortunately, there's a problem with the way the COLA is calculated, which has resulted in Social Security benefits increasing too slowly to actually keep pace with the inflation seniors are experiencing. And, with recent news from the Social Security trustees about the troubled state of the program's financial future, it's unlikely that problem with the COLA is going to be corrected anytime soon.
Here's what the issue is, along with some details about why fixes most likely aren't on the horizon.
Source Fool.com
