Social Security Cost of Living Adjustment (COLA) Expected for 2024 Just Increased – KIRO 7 News Seattle | ET REALITY

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The expected increase in the cost of living for those receiving monthly Social Security benefits rose this week on news that the consumer price index rose in August; However, an advocacy group says the increase will not be enough for seniors to keep up with inflation.

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The Senior League said Wednesday that it estimates the Social Security COLA will be 3.2% by 2024. That would add about $57 to the average monthly benefit, the group says.

That would make the average monthly payment $1,790, according to the TSCL.

While an increase is always good, TSCL noted that most seniors apply for Social Security benefits before reaching full retirement age and receive permanently reduced benefits, making it difficult to make ends meet.

“In 2023, retirees willReceived the highest COLA in 40 years. — (8.7%), but no one is getting rich. The reality is that the dollar amount of the COLA increase received is meager at best, with the average monthly benefit for retirees being just $1,790 in 2023,” the advocacy group said Wednesday.

“According to the latest TSCL Retirement Survey, only 45 percent of participants report spending less than $2,000 in monthly expenses in 2023.

How is COLA determined? The annual COLA is based on the consumer price index for urban wage earners and white-collar workers for July, August and September published by the Bureau of Labor Statistics.

The CPI-W rose 3.6% in July and 3.4% in August.

The increase in payments, set by the Social Security Administration and announced in the second week of October, depends on several factors They measure the cost of food, housing, and other items such as transportation, clothing, and medical care.

He Social Security Law provides a formula used to calculate each year’s COLA, which is based on increases in the CPI-W. The CPI-W has eight main spending categories used in the formula to determine next year’s COLA.

While a 3.2% COLA wouldn’t come close to this year’s historic 8.7% increase, it’s still higher than the 20-year average of 2.6%, according to TSCL’s Mary Johnson.

While the average benefit check will increase by $57, the actual amount Social Security beneficiaries receive is not known until Medicare announces the Part B premium for 2024. That figure is typically announced in November.

Medicare Part B premiums are automatically deducted from most paychecks. The Senior Citizens League projects that the standard Part B premium for 2024 could be about $179.80 a month, up from $164.90 this year.

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