Social Security Benefits Set to Rise 3.2% in 2024, Less Than Half of 2023’s Increase
Based on the latest Consumer Price Index (CPI) data, it has been estimated by the Senior Citizens League that the Cost–of–Living–Adjustment (COLA) to Social Security is set to rise to 3.2% for 2024. By contrast, this is a significant reduction from the 8.7% raise that went into effect in 2023, which was the largest increase in over four decades. The reduction in the increase for 2024 reflects the cooling inflation experienced this year.
The Cost–of–Living Adjustment (COLA) is an important factor in ensuring that Social Security benefits keep up with inflation and changes in the economy. It is designed to help seniors maintain their standard of living and cover essential expenses such as housing, healthcare, and food.
While any increase in income is undoubtedly welcomed by those depending on Social Security, it is crucial to recognize that the rising cost of living and various expenses often outpace these modest raises. Many individuals find themselves struggling to make ends meet despite incremental increases in their benefits.The reality is that the dollar amount of the Cost-of-Living–Adjustment increase remains meager at best. With the average monthly benefit being $1790, it becomes clear that Social Security recipients are far from getting rich off this raise. As such, inflation continues to be a burden on those reliant on Social Security and fixed income underscoring the importance of adequate retirement planning.