The cost-of-living adjustment (COLA) applied to Social Security payments in any given year is based on CPI-W inflation from the third quarter of the previous year. In that sense, COLAs are a reimbursement mechanism to compensate retirees for the buying power benefits lost in the previous year.

The average Social Security payment will rise by more than $50 per month starting in January, thanks to the federal government’s 3.2% annual cost-of-living adjustment, or COLA. A 3.2% increase in the average Social Security check—about $1,

Recipients of Social Security received an increase in benefits in 2025, as they do every year. However, new economic data and policies could spell trouble.

Social Security cost-of-living adjustment, or COLA, went into effect recently and was reflected on the payments received in January. Each year, Social Security benefits are adjusted to keep up with inflation (if there is any),

The Social Security COLA gives much-needed inflation protection to retirees. Each year’s COLA is calculated by comparing inflation data from the third quarter. The CPI-E would probably be a better way to help retirees keep up with rising costs.