Social Security COLA increase for 2024 could be higher than expected

Social Security payments may increase somewhat more than predicted in 2024, but an advocacy group says they will still fall short of what pensioners require.

According to the Senior Citizens League, the Social Security cost of living adjustment, or COLA, for 2024 will most likely be 3.2%. 

According to the group's estimates, this would add around $57 to monthly benefits, bringing them to $1,790 for the average beneficiary.

The cost of living adjustment is computed by taking the average of the inflation figures for July, August, and September.  

It is based on the Bureau of Labor Statistics' Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

In July, the CPI-W increased 3.6%, and in August, it increased 3.4%.

Inflation soared to 40-year highs in 2022 as a result of pandemic stimulus payouts, increased shopping and spending, and extensive supply chain issues 

As a result, the Federal Reserve increased interest rates at a rapid pace. The benchmark interest rate in the United States is now at its highest level in more than two decades.

The economy has slowed slightly in 2023 compared to last year, although inflation remains greater than it was during the 2010s. 

While Social Security benefits increase on an annual basis, the Senior Citizens League claims that the cost of goods and services required by seniors is rising far faster than benefits.

According to the advocacy group, the problem is most severe for senior beneficiaries, who would require an additional $500 in payments every month just to regain the purchasing power they had in 2000.

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