Social Security Recipients May See Big Drop in Cost-of-Living Increase

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Key Takeaways

  • Falling inflation could impact the cost-of-living adjustment (COLA) for Social Security benefits.
  • The Senior Citizens League estimates the 2024 COLA could be 3.1%.
  • Failing to raise the debt ceiling could also impact Social Security.

Easing inflation may mean that the cost-of-living adjustment (COLA) increase for Social Security recipients will be less than half of what it was this year, according to a study by The Senior Citizens League.

The senior citizens advocacy group said that the 2024 COLA could be 3.1%, plunging from a four-decade high of 8.7% this year.

However, the group argued that a lower inflation rate doesn’t mean that prices have come down, and that older Americans are losing their buying power.

The Senior Citizens League pointed out that the study from last year showed Social Security benefits lost 40% of their buying power since 2000. It said last year that improved to 36%, but was still the second-lowest since the study began in 2010.

The group also warned about the risk to Social Security benefits if the White House and congressional leaders don’t reach an agreement on raising the government’s debt ceiling. The Treasury Department has warned that without action, the country could fall into default in about three weeks. The Senior Citizens League explained that if that happened and Social Security trust funds fall short, the Social Security Administration would not have the legal authority to pay benefits in full or on time.

Article Sources
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  1. Senior Citizens League. “Cost-of-Living Adjustment for 2024 Could Be 3.1%.”

  2. U.S. Department of the Treasury. “Secretary of the Treasury Janet L. Yellen Sends Letter to Congressional Leadership on the Debt Limit.”

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