The average monthly income for the over 48 million senior employees receiving Social Security benefits in September was $1,674. The yearly COLA is essentially the most anticipated news for the many retirees who have grown dependent on Social Security payments to help cover their expenses during retirement.
COLA 2023
Retirees, disabled employees, and beneficiaries of survivorship benefits will experience a significant monthly payout rise in 2023. The SSA announced an 8.7% cost-of-living adjustment for the following year during the second week of October. It’s the most significant percentage rise in paychecks since 1982.
On a nominal basis, it will be the most significant year-over-year increase ever. According to a Gallup survey earlier this year, although this may not seem like much, almost 90% of retirees receiving Social Security rely on it as their only source of income.
Anticipation For COLA 2024
Beneficiaries should take advantage of this significant payout increase while it lasts, though, as 2024 may be the 4th time in 15 years that there won’t be any cost-of-living adjustments.
The Federal Reserve was forced to rapidly raise interest rates to restrict borrowing, redistribute pay power away from employees, and return to businesses due to the current inflation rate skyrocketing. To put it bluntly, the nation’s central bank is slamming the breaks on the American economy to prevent more harm from inflation.
Although it is necessary, Social Security beneficiaries may find it uncomfortable in 2024. This is, of course, a very preliminary prediction.
Nearly anyone anticipated that the rate of inflation would reach 9% by mid-year or that the Federal Reserve would have raised its government money financial goal by 375 basis points in even less than a year at this time last year. However, there are warning signals that the Social Security COLA for 2024 may fall short of expectations, reports The Motley Fool.
Related Stories:
2023 Social Security Raise Is Insufficient As Per Critics
Social Security COLA For 2024 Is Expected To Be 3.2%
Social Security COLA Might Decrease in 2024 As Inflation Rate Is Falling
Social Security COLA 2023: Americans May Receive December Raise; Are You Eligible?
Beneficiaries Might Not Receive Social Security COLA In 2024
Social Security Recipients Advised To Be Cautious As On October 13
Social Security Recipients to See Up to $1,800 Payment on December 13
Social Security COLA 2024: The Biggest Changes and How They Impact You
