The newest Social Security COLA projection for 2024 actually increased a tad, despite the fact the rise in the United States kept falling in June and reached its lowest level in over two years. According to information provided by the U.S. Bureau of Labor Statistics, overall inflation in June 2023 increased by 3% over the prior year. Since March of 2021, that was the least 12-month gain. The index for shelter, which reflects growing housing and rental expenses and is especially detrimental to seniors on fixed incomes, was one of the major drivers of the gain.
Prediction For 2024 Social Security COLA
The Senior Citizens League, an impartial seniors advocacy organization, predicts that the Social Security COLA for 2024 will be 3% based on the June BLS statistics. The COLA estimate for the previous month was 2.7%,; this estimate is higher. The CPI-W, the index used to calculate the yearly COLA, increased only 2.3% year over year in June, according to The Senior Citizens League. However, the average annual inflation rate increased marginally, which impacted the COLA calculation. Since there are still an additional three months of inflation statistics to emerge before the final version of the 2024 COLA is released in October, the COLA estimates could alter once more.
Evaluation Of Social Security COLA
The COLA is calculated using CPI-W data for the third quarter of inflation (July, August, and September). A COLA of 3.0% would be significantly lower than this year’s COLA of 8.7%, which was the largest since the start of the 1980s. Social Security recipients can credit 2022’s high inflation rate for this year’s higher benefits. A 3.0% COLA would increase around $53.60 in the average monthly benefit, which now stands at $1,787.00. The final figure won’t be known to Social Security recipients until the Medicare Part B payments are disclosed. Most beneficiaries have their Part B premiums taken automatically, which can significantly impact those contributions.
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