The annual Social Security raise is based on the latest inflation trends.
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Social Security benefits will rise 3.2% for 2024, in line with estimates as inflation held firm in September.
Consumer prices climbed 3.7% year over year in September, according to data released Thursday by the Bureau of Labor Statistics.
The COLA calculation is based on a subset of the headline consumer price index called the consumer price index for Urban Wage Earners and Clerical Workers (CPI-W), which rose 3.6% over the past 12 months. The calculation compares the average consumer price index from the third quarter of 2023 and the average data from the same period last year.
A COLA of 3.2% raises an average monthly retiree benefit of $1,790 by $57, according to Mary Johnson, Social Security and Medicare policy analyst at The Senior Citizens League.
The 3.2% COLA is much lower than this year’s historic raise of 8.7%, yet it’s still higher than the average over the past 20 years, which is 2.6%, according to Johnson. Many seniors’ finances took a hit last year after prices for everyday essentials surged, and they’re still trying to catch up even as inflation has moderated. “Nobody is getting rich,” Johnson said in a statement.
The actual amount that will hit Social Security recipients’ bank accounts each month won’t be clear until Medicare announces the Part B premium for 2024, which typically happens later in the fall. Social Security automatically deducts Part B premiums from most checks. The Senior Citizens Leagues projects that the standard Part B premium for 2024 could be about $179.80 a month, up from this year’s $164.90.
Write to Elizabeth O’Brien at [email protected]
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