EDV - Social Security COLA Is Diving Toward Zero
You might think the Social Security Administration's annual cost-of-living adjustment for Social Security benefits is based some sort of index that accurately reflects "official U.S. inflation." That would be wrong.
You might also think the SSA's COLA is based on some sort of 12-month year-over-year calculation of annual inflation. That would be wrong, too.
Instead, the SSA will determine its 2021 cost-of-living adjustment based on an esoteric and little-followed inflation index: the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). And instead of looking at true year-over-year changes in prices,