Boosting Retirement Income: How the 2024 COLA Could Benefit Seniors
The article examines the 2024 projected cost-of-living adjustment (COLA) for Social Security recipients and its possible impact, including the varying estimates and factors that could affect retirees’ benefits.
Analyzing the 2024 projected cost-of-living adjustment (COLA) for Social Security recipients and its implications for retirees’ benefits. (PHOTO: Pexels)
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Projected COLA and Its Implications
Right now, Social Security recipients are going through an important time. The Social Security Administration (SSA) is looking at inflation numbers from last year’s third quarter to decide on the yearly cost-of-living adjustment (COLA). This is a big deal because the projected COLA for 2024 might be 3%, which means retirees could get about $54 more each month. The SSA compares this year’s third-quarter inflation to the previous year’s to figure out the changes to COLA benefits.
Back in June, The Senior Citizens League (TSCL) predicted a 2.7% COLA for 2024. But as they get more inflation data each month, they keep changing their estimates. Now, in July, they think the COLA could be 3% according to The Hill. This could be good news for retirees, but we should be careful not to get too excited about the potential COLA increase.
Considerations and Uncertainties for Retirees
Right now, the average monthly Social Security benefit is $1,789. If the COLA is 3%, seniors might get almost $54 more each month. But remember, this includes benefits for retirees’ spouses and children. The average retired worker gets a little over $1,837, so with the 3% COLA, they might get about $55 more on average. This was mentioned in a published article in The Motley Fool.
Even though a 3% COLA increase sounds good, it’s essential to know that in 2023, Social Security beneficiaries got an 8.7% COLA increase. Also, the actual amount people get can be affected by other things, like Medicare Part B premiums taken from their benefits. Medicare estimated that the premiums for 2024 could go up by about $10 per month. But there’s also the impact of Medicare covering the new Alzheimer’s drug Leqembi, which might make premiums go up by around $5 more. With other healthcare costs, the real COLA amount is uncertain and could be challenging for retirees.
