Cost Of Living Adjustment - COLA

Cost Of Living Adjustment - COLA
An adjustment made to Social Security and supplemental security income in order to adjust benefits to counteract the effects of inflation. COLAs are generally equal to the percentage increase in the consumer price index for urban wage earners and clerical workers (CPI-W) for a specific period.

For example, if Kevin received $10,000 last year for Social Security benefits and COLAs for this year were 4.1%, then his benefits for this year would be $10,410.

During the 1970s, inflation was really high, and as a result compensation related contracts, real estate contracts and government benefits, led to the popularized usage of COLAs to protect against inflation.

Investment dictionary. . 2012.

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  • cost of living adjustment — ➔ adjustment * * * cost of living adjustment UK US noun [C] (ABBREVIATION COLA) ► ECONOMICS, HR an increase in a person s wages, pension, etc. that is made once a year according to how much the prices of things such as food, transport, and… …   Financial and business terms

  • Cost of living — For other uses, see The Cost of Living (disambiguation). Cost of living is the cost of maintaining a certain standard of living. Changes in the cost of living over time are often operationalized in a cost of living index. Cost of living… …   Wikipedia

  • COLA — [ˈkəʊlə ǁ ˈkoʊlə] abbreviation for cost of living adjustment * * * COLA UK US noun [C] ► ABBREVIATION for COST OF LIVING ADJUSTMENT(Cf. ↑cost of living adjustment) …   Financial and business terms

  • adjustment — ad‧just‧ment [əˈdʒʌstmənt] noun [countable, uncountable] 1. a change that is made to something in order to correct or improve it: • We have made an adjustment to our target. • Grants are to be slashed by 33%, after adjustment for inflation. ˌcost …   Financial and business terms

  • COLA — / kō lə/ abbr 1 cost of living adjustment 2 cost of living allowance Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • cost-of-livingadjustment — cost of living adjustment n. Abbr. COLA An adjustment made in wages that corresponds with a change in the cost of living. * * * …   Universalium

  • Cola (disambiguation) — Cola is a type of soft drink. Colamay also refer to: Cola (programming language) COLA (software architecture) Cost of living adjustment Collision avoidance (spacecraft) Cola Petruccioli (1360–1401), Italian painter Cola di Rienzo (c. 1313–1354),… …   Wikipedia

  • COLA — Cost of Living Adjustment (Business » Accounting) *** Cost Of Living Allowance (Governmental » US Government) ** City Of Los Angeles (Governmental » State & Local) * Center for Ocean Land Atmosphere Studies (Academic & Science » Ocean Science) *… …   Abbreviations dictionary

  • COLA — Cost of Living Adjustment. See cost of living clause …   Black's law dictionary

  • COLA — Cost of Living Adjustment. See cost of living clause …   Black's law dictionary

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