Understanding Social Security COLA and Its Implications

What is the primary purpose of the Social Security COLA?

• To increase government revenue

• To adjust benefits based on inflation

• To reduce the number of beneficiaries

• To promote economic growth

Why is the 2026 COLA expected to be smaller than previous years?

• Due to an increase in government spending

• Because inflation has been cooling down

• Due to a decrease in the number of beneficiaries

• Because inflation is expected to rise

What is the CPIW used for in the context of Social Security?

• To determine tax rates

• To track the spending habits of seniors

• To measure inflation for urban wage earners and clerical workers

• To calculate the national debt

How might tariffs introduced in 2025 affect Social Security beneficiaries?

• By decreasing the need for Social Security

• By potentially increasing prices for essential goods

• By increasing the COLA immediately

• By reducing the number of beneficiaries

What is one proposed alternative to the CPIW for calculating COLA?

• CPIE, the consumer price index for the elderly

• CPIU, the consumer price index for urban areas

• PPI, the producer price index

• GDP, the gross domestic product

What is a major concern regarding the communication of COLA adjustments?

• The adjustments are too frequent

• The adjustments are not based on any data

• The volatility makes it hard to plan for those on fixed incomes

• The adjustments are too small

What role does the Senior Citizens League play in the context of COLA?

• They set the COLA rates

• They predict future COLA adjustments

• They distribute Social Security benefits

• They manage the Social Security fund

Why is it important for Social Security beneficiaries to stay informed about COLA?

• To ensure they receive the correct amount

• To adjust their budgets accordingly

• To influence government policy

• To avoid paying taxes

What is the underlying promise of Social Security according to the video?

• To support those who have contributed to society

• To eliminate poverty

• To provide a fixed income for all citizens

• To ensure economic growth

What is a potential consequence of a smaller COLA for beneficiaries?

• More government benefits

• Increased savings

• Higher purchasing power

• Difficulty in affording basic needs