The retirees have no other income due to their physical strength and no scope of work. They have to depend on fixed income budgets that come as social security benefits. This fixed income budget may not be enough when the hardest reality like inflation strikes in the country. It may be impossible to continue with sky high spike in inflation. Add that, Seniors are real heroes and they have contributed in so many ways. When they stand at this stage, they don’t have the strength to work hard and it is not safe to work hard at this stage. For this, some government assistance helps them live longer and better. Part of this, social security benefits is one of the programs for the seniors.
As inflation is causing the higher prices of everything like food, healthcare, house rent, and mortgage rent, an increase in social security benefits is worth balancing between the cost of living and earnings. Part of this is that Social security benefit recipients received a record of 5.9% COLA in 2022 as the biggest boost in four decades, and the great news is that the recipients are going to receive this percentage highest ever in the next year, 2024 than 2023. So we are going to discuss how much your social security benefits could increase in 2024 according to current data and expert calculations.
Facing the Realities And Adversities For Seniors
it is common to see that so many seniors don’t have any way to cover their costs even if they have no work or they don’t work. The cost of treatment and other amenities for seniors can’t be ignored and these are so important to make sure they can live better and longer for the rest of their life.
The present inflation has hit and dismantled the life of the seniors and it has been hard to go with a minimum. They are struggling to keep a balance between their spending and earnings in this way. A survey conducted by the Senior Citizens league has shown that half of people ages 55 and up dipped in their emergency savings to align with rising costs. More and more seniors are getting into debt and they can’t repay that on time. The trend of applying to the Supplemental Nutrition Assistance Program is on the rise as they don’t afford to buy foods and nutritious foods for them. More importantly, seniors are seen recently visiting a food pantry which indicates how horrible a situation they are passing.
Even though social security beneficiaries have seen a record 5.9% COLA (cost of living adjustment) in 2022 but the recent inflation has been so terrible and so many seniors have limited their buying power. But limited buying for seniors means they are going to face a problem such as medication. It is because of benefits increase is not enough based on inflation data and it has been found by the senior citizen’s league.
Social Security COLA 2024
The United States Social security administration is an independent agency of the US Federal government that runs social security and social insurance programs. This consists of retirement, disability, and survivor benefit. This is a benefit program in which the workers pay their taxes on their earnings to get such benefit that is based on the wage earners’ contribution. On the other hand, supplemental security income is provided on need.
Times go and everything changes. Nothing is predestined and fixed and people always see change and increase in every aspect of their life. Surely people are devastated by the recent pandemic that affected the world. The world is unsteady in business, commerce, and trade. Now every country is faced with difficulties due to inflation and economic meltdown.
In this situation, people are less likely to limit their purchasing power. They are seen going to the grocery store and shopping centers less compared to before. But this has a severe effect on the overall life because the emergency need for seniors, children, and the disabled can’t be ignored. When seniors can’t go with prescription drugs, eat healthy foods, and need what they require, there may be more problems for them in terms of living longer and taking care of their health. This is the scenario that prevails everywhere and there is an adjustment process to keep pace with inflation. Every year, there is inflation of the social security COLA and it is calculated annually. In the same way, a big increase in 2024 is coming to enable them to go with growing costs.
Basics of Social Security Benefits Adjustment
What COLAs Stand for: COLAs stand for the cost of living adjustments that were enacted in 1973 by legislation. The aim of these COLAs is to provide social security and supplemental security income benefits so that the benefit receivers can keep pace with inflation and the growing cost of the needs they need. COLAs come in different percentages and Inflation for social security is calculated annually by Using the Consumer Price Index for Urban Wage Earners and Clerical Workers. For example, Latest COLA was 5.9 percent of social security benefits and SSI payments and it was increased by 5.9 percent beginning with December 2021 and it was payable in January 2022.
How is a COLA calculated: The Social Security Act specifies a formula for determining each COLA. As said above, there is an increase in the consumer price, and COLA is determined according to this increase in the consumer price. According to the Formula, COLAs are based on such increases in the consumer price index for Urban Wage Earners and Clerical Workers (CPI-W). CPI-Ws are calculated on a monthly basis by the Bureau of Labor Statistics.
COLA effective for the month of December of the current year means the same as the percentage increase in the CPI-W from the average for the third quarter of the current year to the average for the third quarter for the last in which COLA was effective. It is to be clear that in case of any increase is to be rounded to the nearest tenth of one percent. In case of no increase or the rounded increase is zero, there will be no COLA for the year.
Increase In Social Security Benefits in 2024
It is really happy news that social security benefits are going up the next year. The social security benefit receiver is passing a hard time due to inflation and it may be a good step to get an increase in the benefit amount. As there is news of an increase in social security benefits going up next year, it may not be possible to know how much as the social security administration has not disclosed such an amount. Now the news indicates a bigger percentage of increase. According to the government data point, social security benefits are going to be a record high cost of living adjustment in 2024.
More importantly, the Senior Citizens League a nonpartisan senior group has estimated that this benefit may increase by 9.6% according to Consumer Price Index data released recently. This comes as an amount of $158.98 monthly for the average retiree benefit of $1656 based on the group’s calculation. But earlier this group also predicted an increase of 10.5%. In 2022, Social security and supplemental security income benefit had an increase of 5.9% to their benefit amount and this figure also came as part of an annual cost of living adjustment for inflation.
Time To Know Increase In Social Security Benefits In 2024
As the great news is a record increase in social security benefits, it is really important to know when this will come as implementation. The Bureau of Labor Statistics works and is scheduled to announce inflation data for the current item and then Social Security Administration typically announces the cost of living adjustment issues soon after. Then there is a process of formal informing through sending this message with the help of letters detailing their specific benefit rate in December. But it is important to note that you should get connected with the website of the Social security administration for current and updated publications and notifications.
Inflation highly hits low-income people, especially people who have to depend on a fixed income and have no other income sources. The recent pandemic and other global turmoil have affected people’s lives as the prices of the essentials are on the rise. The people who are seniors and retirees may see the light of hope in 2024 by an increase of record COLA to make sure they can balance their life and spending.
As the news is around us about the increase in social security benefits, so it is important to get connected with the social security administration for the latest update and notifications. We have discussed a lot of issues on social security benefits based on what is happening on this issue and what experts are saying about this. So you should get touched with the social security administration for the announcement, any changes, and other news as well.