What is a cost-of-living adjustment (COLA)? - NewsBreak

If you're one of the more than 70 million people receiving Social Security benefits, you probably pay close attention to the cost-of-living adjustment, or COLA, which is announced in October each year. The COLA is a change in your monthly benefit to ensure that your purchasing power remains the same even when prices rise due to inflation. In 2021, the Social Security Administration announced that the COLA for 2022 benefits would increase by 5.9 percent, the largest increase since 1982.