How can the COLA affect my Social Security retirement benefits?

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Inflation is rising at a fast pace all over the country. 23% of people over 65 years reported difficulty managing basic household expenses in May. 

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The Cost-of-living-adjustment, or COLA is a percent increase applied to Social Security benefits each year based on the inflation in the market. 

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What is COLA ?

The method used to calculate the Social Security COLA is the CPI-W or Consumer Price Index for Urban Wage Earners and Clerical Worker

How is COLA determined?

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a study showing that many Social Security recipients have lost around forty percent of their purchasing power is released by the SCL

The Social Security Administration will declare 2023’s COLA in October and the benefits will be applied in January 2023.

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When will the 2023 COLA be declared?

Estimates say that next year's COLA can reach 8.3% making it the highest increase till now. 

What will be the COLA's amount?

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Sometimes an employee is transferred to a different city on the same job level but he too gets an appraisal in his salary if the city's cost of living is higher than the previous one.  

Cost-of-Living Adjustments for Transfer

 

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A COLA calculation may be used to increase certain kinds of income, such as contracts, pensions, or government benefits, so they can  maintain increasing the basic living costs of country

In general your employer or say boss will calculate and apply cost-of-living adjustments or COLA to your salary. 

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