The cost of living adjustment (COLA) is an annual increase that Social Security recipients get that helps
them keep up with rising living costs. It is not believed that this benefit will go away but the annual
increase could shrink in the future.

In 2021, you would’ve received an increase of 1.3% to your monthly payments. But the current inflation
rate is 2.6%. If this gap grows even wider, your income will grow by less than the goods and services you
purchase. And maintaining your lifestyle in your later retirement years may be harder than it was in the
early ones.

Keeping your retirement accounts invested in some portion of stocks even while you’re retired could
help. You take on more risk with stocks, which typically means that they grow more over the long term.
These higher rates of return can help you outpace inflation and avoid living on a fixed income.

Social Security probably won’t go away, but it could change quite a bit. And these changes could greatly
impact how you live in retirement. But if you plan on including your payment in your retirement
projections, being aware of these possible changes can help you properly prepare for them.