2024 Social Security COLA Increase May Be Higher Than Expected

2024 Social Security COLA Increase , May Be Higher Than Expected.

On Sept.

13, the Senior Citizens League said that the 2024 cost of living adjustment (COLA) will probably be 3.2%.

On Sept.

13, the Senior Citizens League said that the 2024 cost of living adjustment (COLA) will probably be 3.2%.

The increase would amount to another $57 a month for the average recipient, the group estimates.

The COLA is calculated "based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)," NBC News reports.

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That data, which includes inflation readings for July, August and September, is published by the Bureau of Labor Statistics.

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That data, which includes inflation readings for July, August and September, is published by the Bureau of Labor Statistics.

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In July and August of this year, the CPI-W rose 3.6% and 3.4%, respectively.

In 2022, inflation reached a 40-year high.

The Federal Reserve has increased the benchmark U.S. interest rate to be at its highest level in over 20 years in an attempt to cool inflation.

While the Fed's tactics have somewhat slowed the economy this year, inflation is still higher than it was in the 2010s.

Because of this, the Senior Citizens League says that benefit amounts aren't enough to keep up with the rising "cost of goods and services," NBC News reports.

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For example, anyone who retired before 2000 would require $500 more in benefits each month to reclaim "the purchasing power they had in 2000," NBC News reports.

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The official COLA increase will be announced by the Social Security Administration in mid-October