Seniors Shouldn’t Plan for a Huge COLA Next Year
2023 saw the highest increase for Social Security recipients in years. Even with the 8.7 percent COLA, many were struggling financially. To make matters worse, it seems unlikely that seniors will see an increase close to that in 2024.
COLA Increased Steadily Over the Last Two Years
CNBC reports that While the 2022 COLA adjustment of 5.9% was easily outpaced by inflation rates, the 8.7% COLA in 2023 fared much better for seniors. The increase has definitely helped older Americans more than the Social Security benefits of previous years. There is, however, debate about how these increases impact the economy and how COLA should be handled next year.
Seniors are Spending More in 2023
Older Americans slowed their spending more than other groups during the pandemic. The 2023 COLA may have spurred more spending by seniors, however. According to surveys from The Senior Citizens League, the number of seniors carrying credit card debt for more than 90 days increased to 44 percent as of the first quarter, up from 35 percent in the third quarter of 2022.
2024 is Likely to be a Smaller COLA Year
Based on current projections, the Social Security COLA for 2024 is likely to be considerably lower than this year’s 8.7 percent. This estimate is based primarily on slowing inflation. Some anticipate that rates could drop below 3 percent and might even go as low as 2.5 or less. Read more about the anticipated COLA in the report from CNBC here. The question remains, what do we do about those seniors who can’t afford to live on Social Security?
What About Seniors Who Still Can’t Afford Their Basic Needs?
To help seniors offset high costs and low benefits, we are calling on Congress to pass a bill we call The Greatest Generation Benefits Act immediately. This is something seniors need and can’t keep waiting for. We need more Americans who are willing to stand up and speak out in support of the greatest generation. Together, it is possible to change the lives of these great Americans who are now counting on us. Please sign our petition and spread the word on Facebook and Twitter. And please feel free to send us a message!