________ are government benefits with an automatic cost of living increase based on inflation.

Question

Quizplus · Accepted Answer

Indexed benefits are government benefits that automatically adjust for inflation. The increase in benefits is based on a cost-of-living adjustment (COLA) that is tied to changes in the Consumer Price Index (CPI), which measures changes in the prices of a fixed basket of goods and services. This ensures that the purchasing power of these benefits remains constant despite inflationary pressures. Examples of indexed benefits include Social Security, some defined benefit pensions, and some government annuities.

________ Are Government Benefits with an Automatic Cost of Living