By FATIMA HUSSEIN (Associated Press)
WASHINGTON (AP) — Millions of Social Security recipients will get a 3.2% enhance of their advantages in 2024, far lower than this yr’s historic enhance and reflecting moderating shopper costs.
The cost-of-living adjustment, or COLA, means the common recipient will obtain greater than $50 extra each month starting in January, the Social Security Administration mentioned Thursday. The AARP estimated that enhance at $59 monthly.
“This will help millions of people keep up with expenses,” mentioned Kilolo Kijakazi, Social Security’s appearing commissioner.
About 71 million folks — together with retirees, disabled folks and youngsters — obtain Social Security advantages.
Thursday’s announcement follows this yr’s 8.7% profit enhance, introduced on by report 40-year-high inflation, which pushed up the value of shopper items. With inflation easing, the following annual enhance is markedly smaller.
Still, senior advocates applauded the annual adjustment.
“Retirees can rest a little easier at night knowing they will soon receive an increase in their Social Security checks to help them keep up with rising prices,” AARP CEO Jo Ann Jenkins mentioned. “We know older Americans are still feeling the sting when they buy groceries and gas, making every dollar important.”
Social Security is financed by payroll taxes collected from staff and their employers. The most quantity of earnings topic to Social Security payroll taxes will probably be $168,600 for 2024, up from $160,200 for 2023.
Nancy Altman, president of Social Security Works, an advocacy group for the social insurance coverage program, mentioned that the COLA is a “reminder of Social Security’s unique importance” and that “Congress should pass legislation to protect and expand benefits.”
But this system faces a extreme monetary shortfall in coming years.
The annual Social Security and Medicare trustees report launched in March mentioned this system’s belief fund will probably be unable to pay full advantages starting in 2033. If the belief fund is depleted, the federal government will be capable to pay solely 77% of scheduled advantages, the report mentioned.
There have been legislative proposals to shore up Social Security, however they haven’t made it previous committee hearings.
A March ballot by The Associated Press-NORC Center for Public Affairs Research discovered that the majority U.S. adults are against proposals that will minimize into Medicare or Social Security advantages, and 79% of individuals polled mentioned they oppose lowering the dimensions of Social Security advantages.
The COLA is calculated in line with the Bureau of Labor Statistics’ Consumer Price Index, or CPI. But there are requires the company to as a substitute use a distinct index, the CPI-E, which measures worth modifications primarily based on the spending patterns of the aged, like well being care, meals and drugs prices.
Any change to the calculation would require congressional approval. But with many years of inaction on Social Security and with the House at a standstill after the ouster of Speaker Kevin McCarthy, R-Calif., seniors and their advocates say they don’t believe any form of change will probably be authorized quickly.
The price of residing changes have a huge impact for folks like Alfred Mason, an 83-year-old Louisiana resident. Mason mentioned that “any increase is welcomed, because it sustains us for what we are going through.”
As inflation remains to be excessive, he mentioned, something added to his revenue “would be greatly appreciated.”
Source: www.bostonherald.com”