2024 Social Security COLA To Increase By 3.2% For Retirees, SSI Recipients Next Year!

The Social Security payments will increase by 3.2% next year, only one-third of the 8.7% COLA in 2023. In this article, read and find out why the 2024 Social Security COLA is not enough to cover the cost of living next year.

2024 Social Security COLA [Photo: Chicago, Illinois Social Security Disability Lawyer]

Inflation Rate

One of the reasons why the 2024 Social Security COLA is not enough to cover the cost of living next year is because of inflation. A survey conducted by League revealed that 68% of older adults claimed that their household expenses were at least 10% more than their expenses a year ago despite the overall inflation rate slowing down. Furthermore, this situation has apparently persisted since last year.

Cuts in Benefits

According to Lee, another one of the reasons why the 2024 Social Security COLA is not enough to cover the cost of living next year is because of the cuts in benefits. Reports say a significant number of households earning a lower income have lost access to some assistance programs in the past year. These programs reportedly include the Supplemental Nutrition Assistance Program (SNAP) or food stamps, rental assistance, and the emergency COVID-19 assistance for SNAP and Medicaid.

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Taxes

According to Konish, another one of the reasons why the 2024 Social Security COLA is not enough to cover the cost of living next year is because of taxes. Due to the beneficiaries receiving the highest COLA in 2023, more of them also owe federal income taxes on the Social Security payments. Reports say up to 85% of the Social Security benefits can be considered as taxable income when the income will exceed certain thresholds.

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