Thrifty Banker
  • Politics
  • Business
  • World
  • Investing
  • Politics
  • Business
  • World
  • Investing

Thrifty Banker

Business

Social Security COLA increase for 2024 could be higher than expected

by September 14, 2023
September 14, 2023
Social Security COLA increase for 2024 could be higher than expected

Payments to Social Security recipients may increase a bit more than expected in 2024, but an advocacy group says they’ll still fall short of what retirees need.

The Senior Citizens League said Wednesday that the Social Security cost of living adjustment, or COLA, will likely be 3.2% for 2024. That would add about $57 to monthly benefits, raising them to $1,790 for the average recipient, according to the group’s estimates.

The cost of living adjustment is calculated based on an average of the inflation readings for the months of July, August and September. Specifically, it’s based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) published by the Bureau of Labor Statistics.

The CPI-W rose 3.6% in July and 3.4% in August.

Inflation rocketed to 40-year highs in 2022 in the wake of a combination of pandemic stimulus payments, an increase in shopping and spending, and widespread supply chain problems. That prompted the Federal Reserve to raise interest rates at a rapid pace. The benchmark U.S. interest rate is now the highest it’s been in more than 20 years.

That has slowed the economy somewhat in 2023 compared to last year, but inflation remains higher than it was throughout the 2010s.

While Social Security benefits rise annually, the Senior Citizens League contends that the cost of goods and services that retirees need is increasing much faster than benefits are.

The advocacy group says that problem is the most serious for older beneficiaries, as people who retired before 2000 would need an additional $500 in benefits every month just to get back the purchasing power they had in 2000.

The Senior Citizens League previously said the increase for next year could be as small as 2.7%.

While wages for U.S. workers have been growing and are starting to outpace inflation, that doesn’t help people who have retired and are no longer earning a paycheck. And the league argues that most people retire before they’re old enough to receive the full amount of Social Security benefits they would be entitled to.

The Social Security Administration is expected to announce the official COLA increase in mid-October.

Overall, the U.S. Consumer Price Index rose 3.7% in August, according to BLS data released Wednesday. Prices for consumers rose faster last month primarily because gas prices increased, but over the last year, the cost of shelter is up more than 7%. The cost of items like medications and medical equipment have continued to rise as well.

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
What is an IPO? (Updated 2023)
next post
Inflation is driving up consumer credit card debt by billions of dollars

Related Posts

This small Missouri city could cash in on...

April 8, 2024

SEC charges Robinhood with securities violations; brokerage to...

January 14, 2025

Amazon taps Xbox co-founder to lead new team...

May 31, 2025

Trial of former FTX head Sam Bankman-Fried set...

October 3, 2023

The U.S. economy added 187,000 jobs in July,...

August 8, 2023

Spirit Airlines gets rid of change and cancellation...

May 22, 2024

Sony and Apollo send letter expressing interest in...

May 4, 2024

Millions of parents and young kids could be...

December 13, 2023

The economy is doing better than expected. Your...

January 26, 2024

Wall Street CEOs say proposed banking rules would...

December 7, 2023

    Sign up for our newsletter to receive the latest insights, updates, and exclusive content straight to your inbox! Whether it's industry news, expert advice, or inspiring stories, we bring you valuable information that you won't find anywhere else. Stay connected with us!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Popular

    • 1

      Top 10 Countries for Natural Gas Production (Updated 2024)

      April 6, 2024
    • 2

      Understanding Lithium Mineralogy from an Investment Perspective

      September 12, 2023
    • 3

      US Capital Global Facilitates $50MM Financing to Accelerate Charbone Hydrogen’s North American Expansion

      June 6, 2025
    • 4

      Israel confirms it is arming Hamas rivals in operation opposition calls ‘complete madness’

      June 6, 2025
    • 5

      A GOP operative accused a monastery of voter fraud. Nuns fought back.

      January 3, 2025
    • 6

      Crypto Market Recap: Strategy Eyes US$1B Raise for Bitcoin Push, UK Regulator Reverses ETN Ban

      June 6, 2025
    • 7

      China’s aircraft carriers send message in the open Pacific for the first time – and bigger and more powerful ships are coming

      June 16, 2025

    Categories

    • Business (1,053)
    • Investing (2,079)
    • Politics (2,977)
    • Uncategorized (20)
    • World (3,387)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: thriftybanker.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thriftybanker.com | All Rights Reserved