A 2.5% cost-of-living adjustment increase will mean an extra $50 a month for most Social Security and SSI recipients.

Is it possible to live comfortably in retirement on Social Security income alone?  Yes and no.  Alden and Dena Swartz draw nearly $4,000 a month from Social Security, the government program designed to support Americans in retirement.

The Social Security program undergoes several changes each year to keep benefits aligned with wages and inflation. It is crucial that retired workers and other beneficiaries understand those changes. Social Security is often a major source of income, so misconceptions and knowledge gaps can lead to serious financial planning mistakes.