By Katherine Rodriguez, nj.com (TNS)
Social Security recipients will likely see a smaller cost-of-living adjustment, or COLA, that comes with their benefits for 2024, according to a new study.
A study by advocacy group The Senior Citizens League’s estimated the COLA for next year and found it was far lower than this year’s 8.7%. In October 2022, the COLA for 2023 was a record increase and the highest ever in four decades.
The study noted the COLA would only increase by 3.1% in 2024, which would put the increase at its lowest since 2020.
“This year the study found that the oldest adults, especially those (age 85 and older) who retired before 2000, have lost 36 percent of their buying power. These retirees would need an extra $516.70 per month ($6,200 in 2023) to maintain the same level of buying power as in 2000. This study confirms that the prices older consumers are paying simply are not growing as fast as a year ago, but many prices on key items through February 2023 remain stubbornly high,” the League said in a statement.
Social Security COLAs increased the benefits recipients would receive by 78%, or 3.4% annually, between January 2000 and February 2023.
But because of inflation, which boosted the prices of goods and services, for every $100 a recipient would spend on groceries in 2000, they would only be able to spend $64 in present day.
According to the Center on Budget and Policy Priorities, one in five U.S. residents collect Social Security, which averages out to about 66 million people.
While 80% of retirees make up those on Social Security, the other 20% receive Social Security Disability Insurance or receive benefits because they were a young beneficiary of a deceased worker.
Social Security recipients receive on average $1,782 per month, or $21,384 per year.
©2023 Advance Local Media LLC. Visit nj.com. Distributed by Tribune Content Agency LLC.