According to analysts, the Social Security cost-of-living adjustment (COLA) is projected to decrease to 3.2% in 2024. This is a significant contrast to the rate of close to 9% observed in 2023.
The estimation comes from the Senior Citizens League, who made the announcement on Wednesday based on consumer-price data from August. Should this forecast hold true, retirees receiving the average monthly benefit of $1,790 can expect an additional $57.30 per month. Mary Johnson, the Social Security and Medicare policy analyst at the Senior Citizens League, provided this insight.
As a seasoned expert in Social Security COLAs, Johnson has been studying and estimating adjustments for over a decade. The estimates for both June and July of this year were around 3%.
Social Security Administration’s Official Announcement Awaited
The official COLA for Social Security is yet to be announced by the Social Security Administration. Further details regarding the adjustment are expected to be revealed next month.
COLA Increase Background and Concerns
In 2021, Social Security recipients experienced a substantial 8.7% increase in their benefits due to the COLA. This rise marked the largest increase seen in over 40 years. Data from the Senior Citizens League reveals that the average COLA over the past two decades was 2.6%.
However, even with such a significant bump in benefits for 2023, many retirees remain concerned about their ability to cover expenses. In a recent survey conducted by the Senior Citizens League, 54% of older Americans expressed that the COLA failed to keep up with inflation. Additionally, an equal number of respondents reported that their household expenses surpassed their benefit increases from last year.