Social Security payments will not see a significant rise, similar to that given out in the previous year. The 3.2% cost-of-living-adjustment (COLA) adjustment for 2024 is way smaller than the 8.7% declared in the previous year.
With the adjustment every year tied to inflation, the modest hike in prices has ensured that the increase has been modest. It is a welcome sign that the economy recovering. And for Social Security beneficiaries, the gentle pace of the price hike ensures that there will be a less steep increase in the cost of living in 2024.
September 2023 consumer prices were up by 3.7% in the same period, which keeps it on par with the earlier month. While prices revealed a 0.6% between July and August, between August and September it was 0.4%.
The expenses over gasoline and other fuel were down considerably as the market for US gas eased. Social Service retirement has enjoyed a brief period of low inflation. The cost of gasoline and inflation have been down in recent months and has brought in some relief, especially to Social Security beneficiaries mostly surviving on their monthly checks.
Low Inflation Beneficial For Social Security Beneficiaries
While seniors on Social Security had much to cheer for the last 2 years, while COLA was 5.9% in 2022, in 2023 it was an astounding 8.7%. However, the 3.2% increase for 2024 was almost disappointing for beneficiaries.
But the drop in the adjustment is also a healthy sign for the economy. It indicates that there is a drop in inflation from the ultra-high during the past couple of years. Rampant inflation then ensured such high COLA for Social Security beneficiaries.
But cooling inflation has also brought with it lower costs at pumps and supermarkets and most other things. And that is a bigger boost to the purchasing power of Social Security beneficiaries than a large cost-of-living-adjustment.
