Despite the soaring high prices, Social Security’s pensioners will only get a 3% COLA increase in the year 2024 far below this year’s COLA increase of 8.7%, according to an estimate conducted by The Senior Citizens League (SCL).
COLA Increase Data
Looking at the data, there are around 70 million retired senior citizens and disabled workers who depend on Social Security benefits such as COLA increase, all of these will only experience an overwhelming 3% COLA increase next year which is less than $54, almost three times smaller than this year’s COLA increase of more than $140 per month.
According to a published article in Yahoo! Finance, the COLA increase estimate is based on inflation data, and the actual COLA increase was supposedly released in mid-October.
COLA Increase Effects
A record says that the overall consumer prices were up 0.2% in July from the previous month and that nearly 8 in 10 retirees experience a tight household budget because of high prices, especially house costs, nursing homes, and adult care. This small COLA increase will significantly impact the rents and homeowners insurance in 2024 retirees as the trajected COLA increase of $54 per month will not be enough to cover them.
Moreover, according to the disclosed data, the costs for nursing homes and adult care have painstakingly risen by 2.4% which can be traced back to 1997. Meanwhile, Social Security said that their method of determining the COLA increase doesn’t cover the spending habits of retired adults over the age of 62 and only monitors younger working adults.
Meanwhile, a result of a survey stated that more than half of the general population expressed concerns about having not enough retirement income to pay for their necessities when their hair turned gray and that changes to Medicare will only make the beneficiaries pay more for their healthcare.