Economics Retirement

Q&A: What is COLA (Cost Of Living Adjustment)?

COLA is an acronym for “Cost of Living Adjustment” and it is an increase in a recurring payment to reflect the impact of inflation. COLA is most often associated with Social Security.

Example: Someone is receiving $200 per month from Social Security in 2019 and, in 2020, receives a COLA adjustment of 1.6%. This increases their monthly check from $200 to $203.20.

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