What Is COLA?

stimulus check COLA

Sounds like a Coke. COLA is nothing else but another form of payment for the citizens of America. A social security form that took the initiative to send out checks. Those checks are likely to act like stimulus checks. They are sending out outstanding amounts. These payments will be made every three months. Starts in May. Recently the IRS has just stopped tax refunds. 

It’s likely there will be more payments this year than people have been hoping. However, these payments have different types of criteria, when you are applying make sure you go through the categories thoroughly. You may not be applicable for all types of payment.

COLA Payment Structure

The COLA payment is dependent on birthdays. Who has applied for it and if their birthday falls in between the 1st to the 10th of a month? They are likely to receive their COLA on the second Wednesday of the month. Again whose birthday is between the 11th to 20th of the month they will receive it on the third Wednesday.

Lastly, 21st to 30th or 31st. They are likely to receive it on the fourth Wednesday. The COLA payment is set at $4,555 per month. It’s starting on 10th May. The COLA has increased the number of social security beneficiaries. However, this is affecting the on-time payment until 70 years old. COLA is delaying the whole process.

If an employee has applied for social security benefits. He has already started receiving them. It is unlikely for them to receive a good amount after retirement. The currently set retirement age is set between 66 and 67. Nevertheless, if you are waiting to apply for COLA until the age of 70. There is a massive chance your payment will increase by 8% each year.

All the workers between 42-65 have been asked by the experts to wait till 70 to apply for social security. It will be more beneficial perhaps.