Although an advocacy group predicts that payouts to Social Security recipients will rise a little more than anticipated in 2024, they will still fall short of what pensioners require.
The Social Security cost of living adjustment, or COLA, is expected to be 3.2% for 2024, according to a statement made on Wednesday by the Senior Citizens League. As per the group’s calculations, that would increase monthly payments by around $57, bringing the typical recipient’s total amount to $1,790.
According to the median of the inflation measurements for July, August, and September, the cost of living adjustment is determined. It focuses exclusively on the Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
In July and August, the CPI-W grew 3.6% and 3.4%, respectively.
In the middle of an outbreak of pandemic stimulus payments, a spike in spending and purchasing goods, and severe supply chain issues, inflation jumped to 40-year highs in 2022. The Federal Reserve responded by quickly raising interest rates as a result. The benchmark interest rate in the United States is at its highest point in over twenty years.