The majority of Americans should anticipate significantly fewer Social Security Cost of Living Adjustment (COLA) hikes in 2024 as a result of lower inflation, but boomers, those who were born between 1946 and 1964, who include some who are currently receiving Social Security, may be severely hurt. They expect risk over the Greatest Generation merely because they contributed more and depend more on Social Security than other retirees.
According to the Senior Citizen’s League, the COLA rise may only be 3.1% the following year, which would be just over half of this year’s 8.7% rise, which was the biggest boost in 4 decades. The third quarter of the previous year, which is comprised of July, August, and September, is used to evaluate the COLA.
However, the recent period of high inflation left a lot of individuals in debt and unable to escape their financial binds. It might be more difficult for retirees to pay off debt accumulated throughout these inflationary times with a lesser COLA rise. Additionally, COLA hikes may not always match inflation.
Leave a Reply