People receiving Social Security checks will for the third straight year be getting a cost-of-living adjustment, or COLA, in what they receive each month.
But don’t expect any great boost to the economy to flow from it or for Social Security recipients to be dancing in the street over having more money to spend on what they want. The COLA will be less than 2 percent, or about $20 a month for the typical beneficiary.
Inflation determines the COLA amount. Inflation has been historically low.
But tell that to Social Security beneficiaries who know their costs keep going up. When there was no cost-of-living increase in the years following the Great Recession, people on fixed Social Security incomes were very upset because what they were getting didn’t keep up with the increased costs they faced.
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The 2 percent increase is better than nothing but not by much.