Why Are Social Security COLAs Announced in October?
How COLAs are calculated
Social Security COLAs are calculated based on third quarter Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) data.
If the average CPI-W reading shows a rise from the previous year, benefits are increased accordingly.
You can get a sneak peek, but it may not be so accurate
Experts may attempt to estimate future COLAs, but final figures are only available in October.
Changing Medicare costs also impact COLAs significantly, making precise estimates challenging.
Ensuring Financial Stability
Preparing for COLA changes involves examining budget and potential cuts, especially considering Medicare-related expenses.
Seniors are advised to wait for official announcements to plan their budgets effectively.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.