The way Social Security is set up is each year there's a cost-of-living adjustment.

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The way the system works is you automatically get a cost-of-living adjustment based on the inflation rate.

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Earlier this month, President Barack Obama proposed to tweak the formula for calculating the cost-of-living adjustment, or COLA, for Social Security recipients.

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Starting at the end of December, millions of Social Security recipients will start to see higher payments due to the cost-of-living adjustment (COLA) increase.

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We expect that people will be getting a cost-of-living adjustment this year because there has been some significant inflation, particularly in food and fuel prices.

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That's why the cost-of-living adjustment did not kick in.

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