The Senior Citizens League, a nonprofit senior advocacy group, latest projections to 2024company security moneyThe cost of living adjustment (COLA) is about 3.2%, and the monthly Social Security benefit for retirees ischeckCompared to this year, it will increase by an average of 57.30 yuan.
Mary Johnson, a Social Security and red and blue card policy analyst for the Alliance for Seniors, said the Alliance for Seniors’ calculations are based on the current average amount of Social Security checks received by retirees, which is 1,790 yuan. This is slightly lower than the 1,837 yuan announced by the Social Security Administration (SSA), because in addition to the benefits that employees receive after retirement, the latter also includes spousal benefits, dependent benefits, etc.
Affected by inflation, the cost of living adjustment for Social Security benefits will be as high as 8.7% in 2023, and the adjustment range is significantly reduced to only 3.2% in 2024. However, Johnson said that over the past 20 years, the annual cost-of-living adjustment for Social Security benefits has averaged only 2.6%, so 3.2% is still above average.
Regarding cost of living adjustments for Social Security benefits in 2024, there are three key things retirees should keep in mind:
1. The official version of the 2024 Social Security cost of living adjustments will be announced in October:
The official version of the calculation will be based on the Consumer Price Index for Urban Wage Groups (CPI-W) in July, August and September this year.
2. Medicare Part B (Part B) Medical insurance, commonly known as red and blue cardspremium priceThe cost of living adjustment for Social Security benefits will be affected by:
Part B premiums are usually deducted directly from your Social Security check, and the premium is adjusted annually. The current monthly premium is 164.90 yuan, and is expected to rise to 174.80 yuan in 2024.
3. People who want to start applying for Social Security benefits this year should think again:
People who are approaching the age limit to receive Social Security benefits may want to apply this year to take advantage of the record 8.7% cost-of-living adjustment. But experts say you should assess your personal financial situation and try to get the maximum amount of Social Security check you receive each month. Johnson said that rising inflation has made various expenses more expensive, especially housing, food, medical care, etc. “Nobody is getting richer because of the 8.7% cost of living adjustment.”