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Why a Second Wave of COVID-19 Could Be Financially Disastrous for Social Security Retirees

Why a Second Wave of COVID-19 Could Be Financially Disastrous for Social Security Retirees

To understand why Social Security beneficiaries will face outsized financial consequences if there's a second wave of COVID-19 now or in the near future, you need to know how cost-of-living adjustments (COLAs) work. Specifically, the SSA compares the CPI-W during the third quarter of the current year to the CPI-W during the third quarter in the prior year. If there's no increase in CPI-W this quarter, there will be no cost-of-living adjustment.