We will soon learn the COLA that Social Security recipients who are seniors will receive in 2024. Because it is predicated on third quarter GDP figures, the hike hasn’t been formally declared yet. Even though the 3rd quarter of the fiscal year has ended, a 2024 COLA cannot be determined until information on the CPI-W for September is available.
Forecast For 2024 Social Security COLA
A 3.2% Social Security COLA is forecast for 2024 by the nonpartisan TSCL, based on CPI-W measurements from July and August. Based on the CPI-W figure for September, that amount may vary slightly, but it is a reasonable assumption given the information we have at this time. The median Social Security payment would increase by $57.30 per month in 2024 if a 3.2% COLA ultimately ends up becoming law. And that’s a respectable increase, even if it pales in comparison to the 8.7% COLA that Social Security recipients received at the beginning of 2023.
Concerns Regarding Social Security COLA
But Medicare is the major unanswered concern regarding the COLA in 2024. Future COLA for seniors may be significantly reduced if the expense of Medicare Part B rises significantly. Seniors who are covered by Medicare and receive Social Security payments pay their Part B premiums directly from their Social Security benefits. The price of Part B decreased in 2023 for the very first time in several years, allowing Social Security claimants to fully retain their hefty 8.7% COLA. But no further decrease in Medicare Part B premiums is anticipated. They are predicted to rise instead. The outcome? Less monthly net income for beneficiaries of Social Security.
Medicare Expenses Increase In 2024
The Medicare Trustees predicted earlier this year that the expense of Part B will increase to $174.80 per month in 2024 from $164.90 per month today. That is an increase of around $10. In the meantime, we recently discovered that a 3.2% COLA would increase the typical Social Security payout by around $57 per month. Therefore, even after we subtract $10, the standard beneficiary will get a monthly raise of $47. However, it is presuming a $10 increase in Medicare Part B costs. The Senior Citizens League estimates that Part B will cost $179.80 a month in 2024 due to additional expenses the program is projected to face. The increase is $15 as opposed to $10.
Within the next week, information on the Social Security COLA for 2024 is anticipated, and the cost of Medicare is anticipated to be updated shortly after. We can only speculate as to how much money seniors will make in the coming year up until that point. However, it is reasonable to expect that in any case, any rise in earnings per month will be insignificant compared to what Social Security users enjoyed at the beginning of the current year.