Tens of millions of older Americans are getting the biggest raise of their lifetimes.
The U.S. government announced Thursday that Social Security beneficiaries will see an 8.7% increase in monthly payments this upcoming year, the largest increase in four decades. It’s all part of an annual ritual where Washington adjusts Social Security benefits to keep up with inflation, or at least with one narrow measure of it.
Plenty of controversy accompanies the move, known as a cost-of-living adjustment or COLA. Critics say the data the government uses to set the increase doesn’t reflect what older Americans are actually spending, and thus the inflation they’re actually feeling. The increase is also one-size-fits-all, which means beneficiaries get the same raise regardless of where they live or how big a nest egg they may have.
