Does The Social Security COLA Shortchange Seniors?

Summary

  • The COLA formula is based on an index that slightly lags overall inflation.
  • The COLA formula uses an ‘averaging’ formula that lessens the impact of short-term spikes in inflation.
  • The COLA formula falls well below the inflation-adjusted returns of U.S. Series I Savings Bonds.

Ready to delve into a big pile of numbers? Read my full analysis on SeekingAlpha.com.

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