Social Security can be confusing to navigate. Luckily, a recent post by the Social Security Administration helps clear up a few key terms all retirees should know.

• COLA: This acronym stands for the “cost-of-living adjustment;” a tool created to help benefit payments keep up with inflation. Unfortunately, it has not been keeping pace as it should; find out how we’re working to fix this oversight here.
• Credits: While working and paying Social Security taxes, individuals earn Social Security credits. These credits are essential for eligibility to receive Social Security retirement benefits. Individuals can only earn up to 4 credits each year and most individuals must accumulate 40 credits to qualify for retirement benefit payments.
• Earnings Record: This refers to the chronological history of earnings while working.
• FICA: An acronym that stands for “Federal Insurance Contributions Act,” which refers to the tax withheld from earnings that help fund the Social Security and Medicare programs.

For more information about Social Security, different definitions, and how to navigate the program, make sure to follow Senior Security Alliance on Facebook and Twitter.