The Social Security Administration has announced a 3.2% Cost of Living Adjustment (COLA) for 2024. This adjustment means the average Social Security retiree beneficiary will see their monthly check increase by about $57 to $1,849, though individual benefits may vary.
This increase is calculated by comparing the third quarter Consumer Price Index (CPI) against that of the previous year.
Whether it's a slight increase or a large increase for you, it's always a good time to revisit your income and expenses to see if anything has changed.
Here’s an interesting thought: how well does the CPI accurately reflect the inflation retirees have experienced over the last year?
According to one measure, retirees may be falling behind. The Bureau of Labor Statistics has developed a research Consumer Price Index that attempts to capture the financial experience of older people by re-weighting the goods and services retirees consume. According to the St. Louis Federal Reserve, this metric has seen an inflationary rise of 4.15% between August 2022 and August 2023. This is higher than the Cost of Living Adjustment, meaning some retirees may feel pinched.The annual Social Security COLA announcement is always a good time to revisit your income and expenses to see if anything has changed from the strategy we created. If we can help with that conversation, please contact our office today.