Social Security update: Recipients could receive smaller cost-of-living adjustment next year

As inflation continues to decline, Social Security recipients are set to receive a much smaller cost-of-living adjustment than last year.

According to Fox 5 New York, the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, is the basis for the quarterly COLA. The Senior Citizens League, a group that advocates for senior citizens, estimated that the COLA will increase by 3 % the following year at the current rate. The COLA increased by 8.7 % compared to last year.

SOCIAL SECURITY UPDATE: In three days, 555 people receive a direct payment worth up to$ 4.

The increase would be$ 54, added to the current monthly check of$ 1, 827, if circumstances stay the same by October, when it is announced. The increase could be even less if current trends continue, according to Mary Johnson, a plan researcher with the SCL.

It appears that the COLA for 2024 will be lower than 3 % if inflation continues to fall at the present price, she said. According to recent Senior Citizens League survey results, current high inflation has had long-term fiscal effects on many older households, making recovery difficult, even though easing inflation may reduce older consumers.

MORE FROM THE WASHINGTON EXAMINER BY CLICKING HERE

Johnson emphasized that the COLA is subject to change and that there is still a ways to go before it is announced in October.

The record-breaking 8.7 % increase has so far surpassed the anticipated inflation by an average of 2.6 % per month. The COLA undershot anticipated inflation by a total of$ 1, 054 last year.