On October 12, the Social Security Administration (SSA) will unveil the 2024 cost-of-living adjustment (COLA), affecting around 70 million retirees dependent on Social Security payments.
This annual cost-of-living adjustment (COLA) is vital in safeguarding retirees against rising living costs, akin to securing inflation protection on a private annuity
The Senior Citizens League (TSCL), a leading nonpartisan seniors organization, predicts a 3.2% increase in the 2024 cost-of-living adjustment (COLA), based on consumer price data up to August. While lower than the 8.7% surge in 2023, the highest in over four decades, it surpasses the 20-year average of 2.6%. This adjustment could elevate the average monthly retiree benefit of $1,790 by $57.30.
Social Security benefits saw a noteworthy boost of over $140 per month on average, as noted by Jeff Nesbit, SSA’s deputy commissioner for communications
The cost-of-living adjustment (COLA) is determined by changes in the consumer price index for wage earners, using national average prices rather than regional ones.
The SSA calculates the percentage shift between average prices in the third quarter of the current year and the previous year. This methodology bypasses the fourth quarter due to delayed data availability, ensuring timely adjustments by January 1.
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