RICHMOND, Va. (WRIC) — Social Security recipients could see their benefits increase next year. According to the probability analysis conducted by Elderly FederationRecipients can expect their cost of living adjustment (COLA) benefits to increase by 3.2% in 2024.
Mary Johnson, the league’s Social Security and Medicare policy analyst, said the increase is based on inflation data from July, August and September.
“They calculate the inflation rate for each month and average it and compare it to the inflation rate for the third quarter of the previous year,” Johnson said.
Even with an increase of about $57 for the average recipient, people shouldn’t think they’re getting richer on Social Security, Johnson said.
“Social Security benefits are very modest at best,” Johnson said. “If we’re lucky, it’s only about 30% of our revenue.”
Mr Johnson said another problem with Social Security was that it was not keeping up with the pace of pay rises. According to the Bureau of Labor Statistics, Wages increased by 4.5% The second quarter of 2023 compared to the same period last year.
“We’re more focused on inflation based on consumer prices,” Johnson said. “Consumer prices often rise more slowly than wages.”
The Social Security Administration is still waiting for September inflation data before officially announcing cost of living increases in October. Stay up to date with 8News.
