In 2024, how will your Social Security COLA change? Take a smaller view.
Soaring inflation could soon undo one of the few upsides.
A new estimate by The Senior Citizens League, a nonpartisan advocacy group,
Predicts that older Americans will receive a sharply lower
Cost-of-living adjustment (COLA) next year.
As a result of April's 4.9% consumer inflation rate announced by the government Wednesday,
the roughly 70 million people relying on Social Security could receive a 3.1%
COLA in 2024. COLA in 2023 peaked at 8.7%, which is a significant drop from four decades earlier.
A typical retiree who received $1,827 a month in 2018 would get
An additional $56.64 a month in 2024, bringing the total to $1,883.64.
"In the absence of an accurate cost of living adjustment (COLA)
That keeps pace with rising costs, beneficiaries lose purchasing power,
Particularly over the course of a retirement that could last 25 to 30 years,"
Said Mary Johnson, the league's social security and Medicare policy analyst.
She explained that this can result in hardships such as lost savings, increasing debt, and declining health.
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