The Social Security Administration has released the Cost of Living Adjustment for 2024. It will be 3.2%, much lower than 2023’s 8.7% increase.
The lower COLA is due to the purported drop in inflation this year. Working and retired Americans have both felt the pinch of a slower economy, where both interest rates and inflation remain high. Yahoo Finance reports:
The Social Security Administration (SSA) announced on Oct. 12 that the Social Security cost-of-living adjustment (COLA) will be 3.2% in 2024 — a much smaller figure than last year’s 8.7% COLA) thanks to moderating inflation.
Beneficiaries will see their monthly payments increase by more than $50 on average starting in January.
Inflation is not a transitory problem. The price increase of all goods, especially staples, will be permanent. Deflation, where prices drop, is incredibly rare and a trend that economists usually see as a big problem. The Wall Street Journal continues:
Thursday’s announcement of the increase “will probably feel disappointing to folks because the COLA was so high this year,” said Bill Sweeney, senior vice president for government affairs at AARP.
People are still feeling the sting of higher prices, he added. Examples include staples such as gasoline and groceries.
Seniors continue to be in financial uncertainty. The economy will be a major issue in the 2024 election, and social security recipients will be a major voting block.
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