The projected Social Security cost-of-living adjustment (COLA) for next year is increasing.
Social Security COLA 2024 is Predicted to Increase. (Source: The Motley Fool)
Due to the Increasing Inflation Rate, Social Security COLA 2024 is Also Predicted to Increase
As Fall comes, pensioners receiving Social Security payments have an urgent concern on their minds: “How much will my increase be for next year?” Next month will determine the amount that will be received. However, looking at monthly inflation data, Social Security COLA 2024 might give you a decent idea. The most recent figures have been released. Here is the current amount of your Social Security COLA 2024 increase. And inflation is on the rise. Every month, the Bureau of Labor Statistics (BLS) publishes a summary of the consumer price index. This report provides a glimpse of the preceding month’s inflation trends. Economists, particularly those at the Federal Reserve, are keeping a careful eye on these figures.
The major message from the August report is that inflation is on the rise. The Consumer Price Index for All Urban Customers (CPI-U), also known as the headline inflation index, grew by 3.7% year on year and 0.6% month on month. This is the greatest monthly increase thus far in 2023. Most Americans are unlikely to be shocked by the primary cause of rising prices. More than half of the August headline inflation increase was accounted for by higher gas prices.
But gasoline wasn’t the only problem. Prices rose in a variety of categories in August, including rent, auto insurance, and medical care. Bigger inflation figures imply bigger Social Security increases. The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) is the most crucial number for retirees in the latest BLS report.
CPI-W Could Determine Social Security COLA 2024
The Social Security Administration compares the average CPI-W for the third quarter of this year to the same period in the previous year. If there is an increase, the percentage is rounded to the nearest tenth of one percent to calculate the Social Security COLA for the next year. They now have two of the three months’ worth of CPI-W data required to compute the 2024 Social Security increase. According to current projections, you will receive a 3% benefit boost next year.
However, inflation usually climbs from month to month. If the CPI-W continues to rise at the same rate as it did in August, the COLA 2024 will be 3.1%. A 3.1% increase in Social Security would be a significant decrease from the 8.7% COLA earned this year. That was, however, an exceptionally large adjustment. The average Social Security COLA for the last ten years has been roughly 2.6%.
The Bureau of Labor Statistics is expected to announce September inflation data on October 12, 2023. It shouldn’t be long before the Social Security Administration formally announces the COLA for 2024. Retirees may learn about their new Medicare Part B premiums for next year even sooner. However, don’t expect a drop like the one obtained for 2023. The decrease in premiums was a result of the Centers for Medicare and Medicaid Services (CMS) deciding not to reimburse for the Alzheimer’s disease medicine Aduhelm.
CMS has previously announced that it will cover Leqembi, a pricey Alzheimer’s disease treatment. These expenses are expected to raise your Part B premiums in 2024. This top-rated card gives one of the best cashback rates (up to 5%), 0% interest on purchases and debt transfers for 15 months, and has no annual fee. These are just some of the reasons why the reviewers recommend getting this card. Keep in mind that credit cards offer a higher level of security than debit cards and can help you build credit if used responsibly. Please be aware that we may be compensated for some of the links on this site. This does not affect the honesty or reliability of our reviews.
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