Social Security COLA to rise once again - how much will your retirement payments be?
Social Security retirement payments rise every year depending on the rate of inflation.
Ron DeSantis doubles down on changes to Social Security
Experts are updating their predictions for what the Social Security cost-of-living adjustment (COLA) will be.
Over the last couple of months, the consumer price index (CPI) rate of inflation has eased substantially after exceeding nine percent last year.
However, for the 12 months to August 2023 rose to 3.7 percent which is far above the Federal Reserve’s two percent target.
As such, further interest rate rises could be on the horizon which will add to peoples’ financial woes, alongside inflation.
Due to this, the Senior Citizens League is revising its prediction for COLA from three percent to 3.2 percent.
Read more... Social Security checks worth $913 to hit your account this month [LATEST]
What is COLA?
The cost-of-living adjustment refers to the payment rate rise awarded to Social Security payments every year.
For 2023, COLA was increased to a four-decade high of 8.7 percent in light of the US economy being straddled with high inflation.
This rate hike is awarded to Social Security beneficiaries which include 70 million Americans, mainly older and disabled people.
It should be noted that spouses and the surviving dependants of recipients may also qualify for their deceased loved one’s support.
Don't miss...
TikTok star makes 26x more in profit reselling items found while thrifting
Shoppers to make big savings with Amazon’s Prime Big Deal Days
Dave Ramsey learns how man, 30, became multi-millionaire
What will COLA rise to?
The Senior Citizens League reprorts that the adjustment will likely be around 3.2 percent based on current figures.
While this is lower than this year’s COLA, it is much higher than the 2.6 percent over the last couple of years.
As part of its report, the Senior Citizens League highlighted why retirees at at risk of seeing a decline in Social Security payment rates in the near future.
The organization stated: In 2023, retirees received the highest COLA in 40 years — (8.7 percent), but nobody is getting rich.
“The reality is that the dollar amount of the COLA increase received is meager at best, with the average monthly retiree benefit only $1,790 in 2023.
“According to TSCL’s latest Retirement Survey, 45 percent of those participating report spending less than $2,000 on monthly expenses in 2023, as detailed below in the following table.”
Said table broke down how much retirees spend per month in 2023 and revealed the following information:
- Less than $1,000 - eight percent
- $1,001 - $1,999 37 percent
- $2,000 - $3,999 37 percent
- $4,000 - $5,999 11 percent
- More than $5,999 4 percent
- Uncertain - three percent.
