Answer: COLA stands for Cost of Living Adjustment that takes inflation into consideration.
Social Security and Supplemental Security Income (SSI)
benefits are adjusted to reflect the increase, if any, in the
cost of living as measured by the Consumer Price Index. The
purpose of the cost-of-living adjustment (COLA) is to
ensure that the purchasing power of Social Security and
SSI benefits are not eroded by inflation
Congress enacted the COLA provision as part of the 1972 Social Security Amendments.