Key Points Due to inflation, Social Security COLAs have lost 13.7% of their buying power over the past decade. COLAs reflect higher prices and rarely allow for genuine gains in living standards. The CPI-W, the index used to determine COLAs, underweights many of the expenses older Americans face. The $23,760 Social Security bonus most retirees completely overlook › While it's true that something is better than nothing, cost-of-living adjustments (COLAs) are almost always a mixed bag. For one thing, the 2027 COLA will be based on inflation data for the third quarter of 2026 (July, August, and September). By the time January rolls around and the latest COLA kicks in, that inflation rate may already be outdated.
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