India, June 9 -- October matters for Social Security users because this is the month when the Social Security Administration (SSA) announces next year's Cost-of-Living Adjustment (COLA). The COLA is a yearly increase in Social Security payments to match inflation and rising prices, and it is based on a measure called the CPI-W, which tracks how costs change for working Americans.

This announcement usually comes in mid-October, and it tells retirees how much extra money they will get in the following year. For example, if someone gets $2,071 per month and COLA is 3.9%, their monthly payment would go up by about $81 before taxes and other deductions, as reported by Motley Fool.

Even though this increase may look small, it matters a lot be...