Social Security Recipients Could See a 3% Boost in 2024

by Warren Seah

Recent estimates show that Social Security recipients may receive a roughly 3% increase in benefits next year, marking the first boost in 13 months. This projection comes after the release of July’s consumer-price data.

A Decrease Compared to 2023

According to the Senior Citizens League, a pro-senior think tank, the anticipated cost-of-living adjustment (COLA) for 2024 is expected to be around 3%. While this is considerably lower than the 8.7% increase seen in 2023, it is still a positive development for Social Security beneficiaries.

Impact on Monthly Benefits

If the COLA increases by 3%, it would raise the average monthly benefit from $1,789 to $1,842.70, resulting in an additional $53.70 per month. This adjustment could provide some relief for retirees who have been facing financial challenges due to rising costs.

Lingering High Prices and Healthcare Accessibility

Despite the significant increase in COLA in 2023, many retirees continue to struggle with high prices that have adversely affected their household budgets. According to the Senior Citizens League, about 79% of retirees report feeling the impact of these lingering high prices.

The rise in living costs has also made it difficult for older Americans to access healthcare. Findings from a recent survey conducted by the Senior Citizens League revealed that a majority of participants have had to postpone essential dental care and optical exams, while some have even delayed medical treatments and filling prescriptions due to deductibles, out-of-pocket costs, and unexpected bills.

Unexpected Tax Burden

To add to retirees’ financial concerns, the survey found that more than one in five Social Security beneficiaries (23%) paid taxes on a portion of their benefits for the first time during the past tax season. This newfound tax burden only exacerbates the already strained budgets of many seniors.

While the projected 3% increase is not as substantial as the previous year’s, it still holds promise for Social Security recipients who are grappling with rising costs.

You may also like

Leave a Comment