Some politicians say that Social Security’s COLA is too generous. Should it be reduced?

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.