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FC MARKETS

Markets, money and the economy, explained for American investors

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Cola

2 articles

Retirement

Social Security COLA Explained: How the Annual Raise Is Calculated

Every October the Social Security Administration announces the cost-of-living adjustment for the year ahead. This guide explains how the COLA is calculated from the CPI-W, when it shows up in your check, how Medicare premiums can absorb part of it, and what it means for retirement planning.

6 min read

Retirement

How Social Security Benefits Are Calculated: Credits, AIME and PIA

Your Social Security check comes from a formula that has several steps. It counts work credits, indexes your highest 35 years of earnings, averages them into AIME and runs that through the three-tier PIA formula. This guide covers each step and how to check that your earnings record is right.

8 min read