Social Security recipients are on track to receive a smaller cost-of-living adjustment (COLA) in 2024 than they did in 2023, as inflation has cooled in recent months.
If inflation continues to trend in line with recent data, the COLA for 2024 is expected to be around 3%. This would be significantly lower than the 8.7% COLA that recipients received in 2023, which was the largest in 40 years.SourceMoneyGuru-https://www.mgkx.com/5085.html
The lower COLA in 2024 is good news for the government, as it will help to slow the growth of Social Security spending. However, it is bad news for retirees, who rely on Social Security for a significant portion of their income.SourceMoneyGuru-https://www.mgkx.com/5085.html
For many retirees, a 3% COLA will not be enough to cover the rising cost of living. This could force them to cut back on spending, or even dip into their savings.SourceMoneyGuru-https://www.mgkx.com/5085.html
If you are a retiree, it is important to start planning now for a smaller COLA in 2024. Here are a few tips:SourceMoneyGuru-https://www.mgkx.com/5085.html
- Start by tracking your expenses. This will help you to see where your money is going and where you can cut back.
- Consider delaying Social Security benefits. If you delay claiming Social Security benefits, your monthly payments will be higher.
- Make sure you are taking advantage of all of the benefits that you are eligible for. This includes Medicare, Medicaid, and food stamps.
- Start saving for retirement now. The sooner you start saving, the more time your money will have to grow.
A smaller COLA in 2024 will be a challenge for many retirees, but it is important to remember that you are not alone. There are resources available to help you make ends meet. By planning ahead and taking steps to save money, you can weather this storm and ensure that your retirement is secure.SourceMoneyGuru-https://www.mgkx.com/5085.html
Other things to consider
- The COLA for 2024 is not yet official. The Social Security Administration will announce the final COLA in October 2023.
- The COLA is based on inflation over the past three months. If inflation continues to rise, the COLA could be higher than 3%.
- The COLA affects not only Social Security benefits, but also other programs that are indexed to inflation, such as veterans' benefits and railroad retirement benefits.
- The COLA is not the only factor that affects the amount of Social Security benefits that you receive. Other factors include your age at retirement, your earnings history, and whether you are married.
If you have any questions about the COLA or Social Security benefits, you should contact the Social Security Administration.SourceMoneyGuru-https://www.mgkx.com/5085.html SourceMoneyGuru-https://www.mgkx.com/5085.html