![]() Though that’s the aim, COLA has failed, Johnson claims. Among them, 12% of men and 15% of women rely on Social Security for 90% or more of their income.Īll of these people rely on COLA to ensure their purchasing power isn't eroded by inflation. Nearly 9 out of 10 people aged 65 and older received a Social Security benefit as of Dec. Who qualifies for COLA increase?Ībout 70 million Americans receive benefits from programs administered by the SSA, with retired workers and their dependents accounting for 76.9% of benefits paid in 2022. The next COLA will be announced in October and be effective starting January 2024. Insufficient COLA: Retirement dreams become nightmares for many older Americans as inflation soars When is Social Security COLA announced? Shrunken assets: Bear market fears and retirees: Seniors take steps to protect savings against stock plunge The league uses the most recent inflation data to keep a running projection of what COLA might be next year. ![]() Last month, while the CPI rose 4.9%, the CPI-W increased 4.6%. The CPI-W largely reflects the broad CPI that the Labor Department releases each month but differs slightly. The Social Security Administration bases its COLA each year on average annual increases in the consumer price index for urban wage earners and clerical workers, or CPI-W, from July through September. Homeless seniors: Who are metro Phoenix's homeless people? Why it's so hard to answer that question What is the current COLA rate? ![]() Sharing the burden: More 'Golden Girls' than 'Friends': Can home sharing be the answer to America's housing affordability crisis? These housemates think so. “Without an accurate cost of living adjustment (COLA) that keeps pace with rising costs, beneficiaries lose purchasing power, especially over the course of a retirement that could last 25 to 30 years,” said Mary Johnson, the league's policy analyst for Social Security and Medicare. This can lead to hardships like lost savings, growing debt and declining health, she added.ĬPI breakdown: Inflation dips to 4.9% core consumer price gains stay elevated That’s sharply lower than the four-decade high of 8.7% COLA in 2023.įor the average retiree who got a monthly check of $1,827 this year, the bump would mean an additional $56.64 a month in 2024, boosting the typical payment to $1,883.64. The roughly 70 million people – retirees, disabled people and others – who rely on Social Security could receive a 3.1% COLA in 2024, the group estimates, based on April's 4.9% consumer inflation rate announced by the government Wednesday. Older Americans should expect a sharply lower cost-of-living adjustment (COLA) in their Social Security benefits next year if inflation continues to cool, according to a new estimate by The Senior Citizens League, a nonpartisan advocacy group. One of the few upsides of soaring inflation could soon fade.
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