Federation of Senior Citizens expects the 2024 cost-of-living adjustment for Social Security recipients to be significantly lower than in 2023.
According to its projections, Social Security is expected to increase benefits by 3% in 2024. The Social Security Administration plans to release his 2024 cost of living adjustment in October. The increase will take effect after two months.
At 3%, the average monthly benefit of $1,787 increases by about $53.
The final cost of living adjustment will be in December 2022, and the Social Security Administration has increased the 2023 payout by 8.7%. The 2023 increase is the largest cost-of-living adjustment the Social Security Administration has made since 1981.
Over the last ten years, the annual cost of living has averaged 2.55%.
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The Social Security Administration said the cost of living adjustment is based on the consumer price index for urban wage earners and office workers. Bureau of Labor Statistics We publish consumer price index data monthly. As of June 2023, The consumer price index is up 4% year-on-year.
The Alliance for the Aged notes that cost-of-living adjustments have not been successful enough to cover the daily expenses of the elderly.
According to the Alliance for Senior Citizens, those who retired before 2000 have lost 36% of their purchasing power. On average, these retirees (most of whom are over the age of 85) will need an additional $516 a month to maintain the same level of purchasing she had in 2000.
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