The Social Security Cost-of-Living Adjustment (COLA) is a source of frustration to many people. It is misunderstood, much maligned and undervalued. It is also a source of ever-growing liabilities for the Social Security Trust. When providing a COLA under the law affordability is no longer a consideration.
In any case, here is a brief history of the Social Security COLA.
“The Story of COLAs
Most people are aware that there are annual increases in Social Security benefits to offset the corrosive effects of inflation on fixed incomes. These increases, now known as Cost of Living Allowances (COLAs), are such an accepted feature of the program that it is difficult to imagine a time when there were no COLAs. But in fact, when Ida May Fuller received her first $22.54 benefit payment in January of 1940, this would be the same amount she would receive each month for the next 10 years. For Ida May Fuller, and the millions of other Social Security beneficiaries like her, the amount of that first benefit check was the amount they could expect to receive for life. It was not until the 1950 Amendments that Congress first legislated an increase in benefits. Current beneficiaries had their payments recomputed and Ida May Fuller, for example, saw her monthly check increase from $22.54 to $41.30.
These recomputations were effective for September 1950 and appeared for the first time in the October 1950 checks. A second increase was legislated for September 1952. Together these two increases almost doubled the value of Social Security benefits for existing beneficiaries. From that point on, benefits were increased only when Congress enacted special legislation for that purpose.
In 1972 legislation the law was changed to provide, beginning in 1975, for automatic annual cost-of-living allowances (i.e., COLAs) based on the annual increase in consumer prices. No longer do beneficiaries have to await a special act of Congress to receive a benefit increase and no longer does inflation drain value from Social Security benefits.” Source: SSA Website
QUINNSCOMMENTARY 
I really am confused about this COLA thing..I had to take early retirement due to my financial situation..I think that it is unfair that i have to live with the small amount im getting now..and when I turn 65 i wont be getting my full benefits..some people have to take early retirement due to the economy..i think they need to change the rule and allow these early retirees..when they turn 65 to get the amount they would have gotten if they had waited til 65…change the rules people..im sure the politicians..give themselves raises every year..and this takes out of pockets of regular hard working people..the law needs to be changed
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What you are receiving is based on your past earnings while working and your expected life expectancy at the age you began to receive benefits. That is quite fair. To increase your benefit at age 65 would add costs to Social Security in large part because why wouldn’t ️Everyone do the same thing knowing their benefit would increase.
Congress does not give itself a raise each year. In fact, Congress is underpaid which may be the reason so many wealthy people run for Congress and why those in Congress are influenced by individuals who can help them financially after they leave office.
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