Please ensure Javascript is enabled for purposes of website accessibility
Social Security Benefits Will Increase by 3.2% in 2024 as Inflation Moderates
gvw_ap_news
By Associated Press
Published 6 months ago on
October 12, 2023

Share

WASHINGTON — Millions of Social Security recipients will get a 3.2% increase in their benefits in 2024, far less than this year’s historic boost and reflecting moderating consumer prices.

The cost-of-living adjustment, or COLA, means the average recipient will receive more than $50 more every month beginning in January, the Social Security Administration said Thursday. The AARP estimated that increase at $59 per month.

Impact of the Increase

“This will help millions of people keep up with expenses,” said Kilolo Kijakazi, Social Security’s acting commissioner.

About 71 million people — including retirees, disabled people and children — receive Social Security benefits.

Thursday’s announcement follows this year’s 8.7% benefit increase, brought on by record 40-year-high inflation, which pushed up the price of consumer goods. With inflation easing, the next annual increase is markedly smaller.

Still, senior advocates applauded the annual adjustment.

“Retirees can rest a little easier at night knowing they will soon receive an increase in their Social Security checks to help them keep up with rising prices,” AARP CEO Jo Ann Jenkins said. “We know older Americans are still feeling the sting when they buy groceries and gas, making every dollar important.”

Social Security Financing

Social Security is financed by payroll taxes collected from workers and their employers. The maximum amount of earnings subject to Social Security payroll taxes will be $168,600 for 2024, up from $160,200 for 2023.

Nancy Altman, president of Social Security Works, an advocacy group for the social insurance program, said that the COLA is a “reminder of Social Security’s unique importance” and that “Congress should pass legislation to protect and expand benefits.”

But the program faces a severe financial shortfall in coming years.

The annual Social Security and Medicare trustees report released in March said the program’s trust fund will be unable to pay full benefits beginning in 2033. If the trust fund is depleted, the government will be able to pay only 77% of scheduled benefits, the report said.

There have been legislative proposals to shore up Social Security, but they have not made it past committee hearings.

A March poll by The Associated Press-NORC Center for Public Affairs Research found that most U.S. adults are opposed to proposals that would cut into Medicare or Social Security benefits, and 79% of people polled said they oppose reducing the size of Social Security benefits.

Future of Social Security

The COLA is calculated according to the Bureau of Labor Statistics’ Consumer Price Index, or CPI. But there are calls for the agency to instead use a different index, the CPI-E, which measures price changes based on the spending patterns of the elderly, like health care, food and medicine costs.

Any change to the calculation would require congressional approval. But with decades of inaction on Social Security and with the House at a standstill after the ouster of Speaker Kevin McCarthy, R-Bakersfield., seniors and their advocates say they don’t have confidence any sort of change will be approved soon.

The cost of living adjustments have a big impact for people like Alfred Mason, an 83-year-old Louisiana resident. Mason said that “any increase is welcomed, because it sustains us for what we are going through.”

As inflation is still high, he said, anything added to his income “would be greatly appreciated.”

RELATED TOPICS:

DON'T MISS

Sacramento Gave Homeless Camp a Lease as an Experiment. Here’s What Happened.

DON'T MISS

Merced Supervisors Accused of ‘Triple Crown Race’ of Failures Amid Talk of Closing Fire Stations

DON'T MISS

Teacher Appreciation Week Surprises That Educators Will Love

DON'T MISS

A Mission of Mercy, Then a Fatal Strike: How an Aid Convoy in Gaza Became Israel’s Target

DON'T MISS

Walberg Era Begins With a Charge to ‘Revolutionize’ Bulldogs Basketball

DON'T MISS

California Man Sentenced to 40 Years to Life for Fatal Freeway Shooting of 6-Year-Old Boy

DON'T MISS

16 Clovis Students Rewarded With Scholarships for Their Resilience

DON'T MISS

Dr. Green Thumb’s Is Open. Sweet Flower Debuts Saturday in Fresno Cannabis Rollout.

DON'T MISS

Reacher Star Alan Ritchson Calls Donald Trump a ‘Rapist’

DON'T MISS

Community Leaders Call for Transparency in Fresno Superintendent Search

UP NEXT

Austin Tells Congress Israel Is Taking Steps to Boost Aid to Gaza as Lawmakers Question US Support

UP NEXT

Will China Flood the Globe With EVs, Green Tech? Latest on US-China Trade Fight

UP NEXT

JPMorgan’s Dimon Warns Inflation, Political Polarization, Wars Creating Risks Not Seen Since WWII

UP NEXT

CA Labor Priorities and Business ‘Job Killers’ on a Collision Course

UP NEXT

4.8 Magnitude NYC Earthquake Unnerves the Northeast

UP NEXT

Robust US Job Growth Indicates Continued Economic Strength

UP NEXT

State Department Under Fire for Downplaying Attack on Humanitarian Workers in Gaza

UP NEXT

US Job Openings Rise Modestly to 8.8 Million in February in Strong Labor Market

UP NEXT

Person Catches Bird Flu After Being in Contact With Texas Cows

UP NEXT

Learn the Latest About Bitcoin From Crypto the Wonderdog & Chris Kameir

A Mission of Mercy, Then a Fatal Strike: How an Aid Convoy in Gaza Became Israel’s Target

7 hours ago

Walberg Era Begins With a Charge to ‘Revolutionize’ Bulldogs Basketball

18 hours ago

California Man Sentenced to 40 Years to Life for Fatal Freeway Shooting of 6-Year-Old Boy

19 hours ago

16 Clovis Students Rewarded With Scholarships for Their Resilience

20 hours ago

Dr. Green Thumb’s Is Open. Sweet Flower Debuts Saturday in Fresno Cannabis Rollout.

21 hours ago

Reacher Star Alan Ritchson Calls Donald Trump a ‘Rapist’

21 hours ago

Community Leaders Call for Transparency in Fresno Superintendent Search

21 hours ago

Israeli Settlers Rampage Through a West Bank Village, Killing 1 Palestinian and Wounding 25

23 hours ago

US Intelligence Finding Shows China Surging Equipment Sales to Russia to Help War Effort in Ukraine

24 hours ago

From Tragedy to Triumph: The Land Before Time Litter’s Journey

1 day ago

Sacramento Gave Homeless Camp a Lease as an Experiment. Here’s What Happened.

When Sacramento changed its plan to demolish a homeless encampment on a vacant lot on Colfax Street, instead offering the homeless occupants...

4 hours ago

4 hours ago

Sacramento Gave Homeless Camp a Lease as an Experiment. Here’s What Happened.

6 hours ago

Merced Supervisors Accused of ‘Triple Crown Race’ of Failures Amid Talk of Closing Fire Stations

6 hours ago

Teacher Appreciation Week Surprises That Educators Will Love

7 hours ago

A Mission of Mercy, Then a Fatal Strike: How an Aid Convoy in Gaza Became Israel’s Target

18 hours ago

Walberg Era Begins With a Charge to ‘Revolutionize’ Bulldogs Basketball

19 hours ago

California Man Sentenced to 40 Years to Life for Fatal Freeway Shooting of 6-Year-Old Boy

20 hours ago

16 Clovis Students Rewarded With Scholarships for Their Resilience

21 hours ago

Dr. Green Thumb’s Is Open. Sweet Flower Debuts Saturday in Fresno Cannabis Rollout.

MENU

CONNECT WITH US

Search

Send this to a friend