According to current estimates, Social Security’s cost-of-living adjustment for seniors will probably be less than two-thirds of what they received in 2023 because inflation is still expected to be low next year.
Based on inflation data released on Tuesday, which showed that consumer prices climbed at the weakest rate since April 2021 in May, the Senior Citizens League now projects that the Social Security cost-of-living adjustment, or COLA, for 2024 might be 2.7%.
CPI-W Calculate Social Security’s COLA Rose 3.6% Over The Past Year
The estimated rise in benefits is significantly less than the 8.7% boost seniors received this year, which was the largest increase in four decades and increased the average retirement payment by more than $140 per month.
The lesser COLA, however, could not be sufficient for the more than 70 million elderly retirees and disabled workers who continue to struggle with the ongoing issue of rising prices.
However, the CPI for Urban Wage Earners and Clerical Workers (CPI-W), the index used to compute Social Security’s COLA, rose merely 3.6% over the previous 12 months, or 0.2% from April without a seasonal adjustment.
For instance, according to 62% of study respondents, their fastest-growing expense is food. 22% of survey respondents said that their top concern is rising housing expenses.
Through June 6, 2023, the most recent version polled 2,275 people.
Read more: Will Your Social Security Benefits Increase With 2024 Changes?
SSA Expected To Announce COLA In Mid-October
However, because household expenditures increased more than the amount of retirees’ COLAs in 2021 and 2022, the average Social Security payment slipped behind by $1,054, prompting 53% of retirees to question if they will recoup.
The CPI-W for the third quarter of the year, which is July, August, and September of 2023, is averaged, and the difference between that number and the same data from the previous year is used to determine the real COLA.
After the release of the September consumer price index data, the Social Security Administration is anticipated to make the COLA announcement in the middle of October.
Read more: June Social Security Payments: When Will Your Benefit Arrive?