from Birch Gold Group:
Since 1975, the Social Security Administration (SSA) has provided automatic Cost-of-Living Adjustments (COLAs), which increase Social Security benefit payouts. For 2020, the adjustment officially ended up at 1.6%.
According to the SSA, this adjustment is “enacted by legislation that ties COLAs to the annual increase in the Consumer Price Index (CPI-W). The change means that inflation no longer drains value from Social Security benefits.”
It’s nice to think the SSA is doing what it can to help recipients maintain their buying power, especially retirees who rely on payments for most or all of their retirement.