The Social Security Update is Finally Starting to Screw Boomers
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If America’s seniors had a tough time making ends meet in 2023, get ready for an even tougher 2024. Unfortunately, the U.S. government recently announced a Social Security update that’s bound to incite frustration and disappointment.
Many seniors struggle to make ends meet and depend on monthly Social Security payments. That’s why it’s a major event when the government discloses updates that reveal how much our seniors will receive in the coming year. As it turns out, however, there will be little relief and much consternation as people find out about 2024’s payment increases.
A Shocking Social Security Update
So, here’s the lowdown on the Social Security update for next year. Previously, I reported on the Senior Citizens League’s prediction that the 2024 Social Security cost-of-living adjustment (COLA) will be 3.2%.
Unfortunately, that prediction was spot-on. The Social Security Administration (SSA) disclosed that the Social Security COLA will, indeed, be 3.2% in 2024. Meanwhile, the annualized Consumer Price Index (CPI) increase was 3.7% in August and also 3.7% in September.
In other words, the increase in next year’s Social Security checks won’t even keep up with inflation at the current rate. Furthermore, the 3.2% COLA is much less than the 8.7% Social Security COLA for 2023.
This is monumental and potentially catastrophic. As InvestorPlace contributor Shrey Dua reported, around 40% of Americans aged 65 and older rely on Social Security for at least half their income, per AARP. One can only imagine the financial implications — and the fear and anger — for many struggling seniors in 2024.
What Happens Now?
In light of the frustrating Social Security update, some of America’s seniors will have to cut back on their expenses. Moreover, they may need to save up whatever they can scrape together for an emergency fund.
Additionally, some people might go back to work, and this could have an impact on the U.S. labor market. It’s difficult to predict the full consequences of the shockingly meager COLA for 2024. Yet, it’s safe to conclude that there will be ripple effects for months and even years to come.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
