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WASHINGTON — Millions of Social Security recipients will see their benefits increase by 3.2% in 2024, far below this year’s historic increase and accounting for the moderate impact of consumer prices. It is reflected.
The average recipient will receive more than $50 more per month starting in January due to cost-of-living adjustments (COLA), the Social Security Administration announced Thursday. AARP estimates that increase at $59 per month.
“This will help millions of people make ends meet,” said Kiroro Kijakazi, acting director of the Social Security Administration.
Approximately 71 million people receive Social Security benefits, including retirees, people with disabilities, and children.
Thursday’s announcement follows an 8.7% increase in benefits this year, driven by record inflation in 40 years that pushed up the price of consumer goods. If inflation eases, the next annual growth rate will be significantly smaller.
Still, senior advocates praised the annual adjustment.
“Retirees can now rest a little easier at night knowing they will soon receive an increase in their Social Security checks to keep pace with rising prices,” said Jo Ann Jenkins, CEO of AARP. said. “We know that older Americans still feel pain when buying groceries and gas, and they value every penny.”
Social Security is funded by payroll taxes collected from workers and their employers. The maximum income subject to Social Security payroll taxes will increase from $160,200 in 2023 to $168,600 in 2024.
Nancy Altman, president of Social Security Works, an advocacy group for the Social Security program, said the COLA is “a reminder of the unique importance of Social Security” and that “Congress must pass legislation to protect and expand benefits.” We should.”
However, the program will face severe funding shortfalls in the coming years.
The Social Security and Medicare Administration Board’s annual report released in March said the program’s trust fund will no longer be able to pay full benefits starting in 2033. If the trust fund is depleted, the government will only be able to pay 77% of scheduled benefits, the report said. Said.
Bills to strengthen Social Security have been introduced but have not passed committee hearings.
A March poll conducted by The Associated Press-NORC Center for Public Affairs Research found that most U.S. adults oppose proposals to cut Medicare and Social Security benefits, with 79% of those surveyed saying They responded that they were against scale reductions.
COLA is calculated based on the Bureau of Labor Statistics’ Consumer Price Index (CPI). But some are calling for authorities to instead use a different metric, the CPI-E, that measures price changes based on spending patterns among seniors, such as the cost of health care, food and medicine.
Any changes to the calculation would require parliamentary approval. But after decades of inaction on Social Security, and with the House gridlocked after the ouster of House Speaker Kevin McCarthy, R-Calif., seniors and their advocates are anxious to see some reform. He said he is not confident that it will be approved immediately.
Cost-of-living adjustments will have a big impact on people like Alfred Mason, 83, of Louisiana. “Any increase is welcome because it will support what we are going through,” Mr Mason said.
He said the increase in income would be “very welcome” as inflation remains high.
