The Social Security Cost-of-Living Adjustment, or COLA, is going to be 5.9% next year.
The Social Security Cost-of-Living Adjustment, or COLA, is going to be 5.9% next year. While that’s a nice bump for retirement benefits, don’t order the party favors just yet. Sure, everyone wants to keep pace with the cost of living. And Social Security is one of the few government programs to do that. Your 401(k) and IRA withdrawals are not indexed to inflation. You get dinged even more when you pay income taxes on that money. Keep in mind that there are still out-of-pocket health expenses in retirement.
