In which year was the Cost-of-Living Adjustment (COLA) added to Social Security?

The Cost-of-Living Adjustment (COLA) was introduced in 1970 as a way to protect Social Security benefits from inflation. This adjustment is based on changes in the Consumer Price Index (CPI) and is designed to ensure that beneficiaries' purchasing power is maintained over time, especially as living costs increase. The implementation of COLA marked a significant change in how Social Security benefits were adjusted, as prior to this, benefits were only adjusted through legislative actions and were not automatically indexed to inflation. This automatic adjustment mechanism has played a crucial role in safeguarding the financial well-being of retirees and other beneficiaries reliant on Social Security.