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Social Security COLA: Recipient Of 12 States To Have Lesser Social Security Benefits

Social Security Benefits
Social Security Benefits; Source- CNN

The annual COLA will increase Social Security benefits next year, but many seniors will also have to pay more for healthcare. The Centers for Medicare and Medicaid Services (CMS) states that Medicare premiums take Social Security COLA into account.

Social Security Benefits

Social Security Benefits; Source- AARP

Social Security COLA 2024

A COLA of 3.2% is scheduled to be paid to over 71 million seniors who receive social security benefits in January. This amounts to an extra $59 on average per month. However, according to CMS, the typical monthly cost of Medicare Part B which is required for the majority of elderly and disabled individuals to pay for certain medical treatments, outpatient care, medical supplies, and preventive services will rise by $9.80, or 6%, to $174.70. Medicare Part B enrollees’ yearly deductible will increase by $14 to $240 in 2024.

Medicare Part A inpatient hospital deductibles for beneficiaries will rise by $32 from $1,600 in 2023 to $1,632 in 2024 if they are admitted to the hospital. The Medicare cost rise is less than the $179.80 The Senior Citizens League (TSCL) had predicted in September. The Social Security COLA of 3.2% is much higher than the average of 2.6% over the previous 20 years; yet, annual analysis by TSCL indicates that Social Security payouts have lost almost 36% of their purchasing power since 2000. Approximately 80 percent of retirees believe that Congress ought to strengthen inflation protection by offering a COLA that more accurately represents the inflation that older adults face.

Estimation Of Social Security COLA

The CPI has been used to compute the Social Security COLA since 1975; however, the index does not account for the expenses of retired households with more than 62 members. Housing and medical expenses account for a larger portion of the incomes of older and handicapped Social Security claimants; these are the two areas of spending that often experience faster rate increases than total inflation. To further shield older Americans’ income from the effects of inflation, TSCL, and other senior activists have suggested determining annual COLA using a “senior” CPI, which more closely reflects how older Americans spend their money.

Paying off debt with a personal loan might lower your interest rate and monthly expenses if you are retiring or getting ready to retire. To evaluate several personal loan providers in one location and select the one with the best interest rate for you, visit Credible. Some seniors’ eligibility for low-income support programs, such as SNAP and rental assistance, may be impacted by their higher salaries as a result of significant COLA increases over the previous three years. Federal emergency COVID help for Medicaid and SNAP stopped earlier this year.

In addition, an estimate by the Committee for a Responsible Federal Budget (CRFB) suggests that by 2033, Social Security trust funds may become insolvent, resulting in a $17,400 yearly benefit cut for Americans. The Old-Age and Survivors Insurance (OASI) trust fund is in danger of becoming bankrupt, according to the CRFB analysis, as fewer workers are contributing to the system to support an increasing number of pensioners. All beneficiaries will automatically have their annual benefits reduced by 23% if lawmakers do nothing.

 

 

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