Understanding Social Security and COLA

What is the primary purpose of the Cost of Living Adjustment (COLA) in Social Security?

• To provide a fixed annual bonus

• To decrease benefits during economic downturns

• To adjust benefits according to inflation

• To increase benefits based on age

Why was the estimated COLA for 2025 adjusted from 3% to 2.7%?

• Due to a decrease in the number of retirees

• Because of unexpected economic growth

• As a result of inflation cooling more than expected

• To align with new government policies

Which of the following items experienced a significant price increase, as mentioned in the video?

• Clothing

• Luxury cars

• Beef roasts and eggs

• Electronics

How is the COLA for Social Security benefits calculated?

• Through a fixed percentage set by the government

• Based on the Consumer Price Index for urban wage earners and clerical workers

• By analyzing the stock market trends

• By comparing the GDP growth rate

What is the significance of even a slight increase in Social Security benefits?

• It has no real impact on beneficiaries

• It helps manage rising costs of living

• It leads to a decrease in taxes

• It results in higher savings interest rates