Social Security benefits are adjusted automatically each year, through the cost-of-living adjustment (COLA), to keep pace with inflation. Without the COLA, the real value of a retiree’s benefits would be cut in half in 20 years. The COLA formula is not overly generous; in fact it should be increased because the current COLA does not fully account for rising medical costs.
Home Some politicians say that Social Security’s COLA is too generous. Should it be reduced?