By Caitlin Cahalan | The Street
Sixty-eight million Americans receive Social Security Insurance (SSI) payments each month, and most retirees (58%) note that Social Security is a significant source of income in retirement.
Therefore, it is crucial that these payments cover basic expenses, especially during times of stubborn inflation. The federal government provides a Cost of Living Adjustment (COLA) to ensure that the purchasing power of Social Security payments isn’t diminished by inflation and the rising cost of living.
The past few years of consistent inflation have prompted the Social Security Administration to seriously reevaluate the current COLA. While the COLA is adjusted annually, years of sustained inflation typically prompt higher adjustments.