Social Security increases their COLA every year in order to match inflation, and the last time it saw a substantial increase was in the 1980s, but the pandemic may be giving beneficiaries a nice surprise this month.
Because COLA is directly influenced by inflation and the costs that go into day to day life, the more the prices go up, the more COLA has to go up.
The Motley Fool explains that the exact estimate for what the raise will be cannot be pinpointed quite yet because the data for September needs to be put together for the the Consumer Price Index for Urban Wage Earners and Clerical Workers.
July, August, and September are then used to determine what exactly that raise is going to be, which is normally announced in October.
Once it’s known, it goes into effect the next January.
Seniors don’t want to miss out on the announcement this month.
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