Reports say that the 2024 cost of living adjustment is anticipated to increase to 3%. In this article, read and find out how much will the Social Security benefits increase for retirees!The recent consensus is that the 2024 cost of living adjustment is anticipated to increase to 3% which unfortunately suggests that retirees and other recipients may receive a smaller increase compared to 2023. This is because the COLA in 2022 was at 5.9% and the COLA in 2023 was at 8.7%— the two biggest increases the beneficiaries have received in 40 years.
According to Markowitz, economists and policy experts at Boston College, the Bipartisan Policy Center, The Senior Citizens League, and Morningstar also expect that the 2024 cost of living adjustment will increase to 3%. Fortunately, the inflation has substantially decreased in the past year due to the actions made by the Federal Reserve which made the small increase possible next year.
2024 Cost of Living Adjustment Tied to Inflation
According to Jennewine, the Social Security Administration (SSA) calculated the 2024 cost of living adjustment by dividing the average CPI-W from July, August, and September this year by the average CPI-W of the same months in the previous year. For instance, in 2021, the CPI-W for the third quarter increased to 5.9% which made the COLA increase to the same percentage in 2022.