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.

Social Security beneficiaries have relied on annual cost-of-living adjustments (COLAs) to maintain their purchasing power.

When you are on  Social Security, you can expect your retirement benefits to increase during most years. That’s because Cost of Living Adjustments (COLAs) typically happen automatically from year to year.

Social Security recipients are allowed to collect benefits while working. Once full retirement age arrives, you can earn any amount of money without risking having benefits withheld. But prior to that point, you'll be subject to an earnings-test limit.

Are you a retiree who would also be considered part of the baby boomer generation? If so, you might be concerned about the 2025 Social Security change to the cost of living adjustment -- or COLA,

Key Points In 2025, Social Security benefits got a 2.5% cost-of-living adjustment. Initial estimates are calling for a similar COLA in 2026. At this point, it’s premature to nail down a COLA, as it will depend on economic conditions in the next 12

The bad news is that you'll lose spousal benefits once you're no longer married, but you could be entitled to a different type of benefit. You'll only qualify for spousal benefits if you're currently married to someone who is entitled to either retirement or disability benefits.