Social Security & the Cost-of-Living Adjustments

Most people are aware that there are annual increases in Social Security benefits to offset the effects of inflation on fixed incomes. These increases, now known as Cost-of-Living Allowances (COLAs), are such an accepted feature of the program that it is difficult to imagine a time when there were no COLAs.

Beginning in 1975, Social Security started automatic annual cost-of-living adjustments. The change was enacted by legislation that ties COLAs to the annual increase in the Consumer Price Index (CPI-W).

Before 1975, beneficiaries had to await a special act of Congress to receive a benefit increase. The change means that inflation no longer drains value from Social Security benefits.

• The 2008 COLA
• The 2007 COLA
• The 2006 COLA
• The 2005 COLA
• The 2004 COLA
• The 2003 COLA
• The 2002 COLA
• The History of COLA