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Social Security Announces 2024 COLA

Social Security Announces 2024 COLA

October 13, 2023

The Social Security Administration has announced a 3.2% Cost of Living Adjustment (COLA) for 2024. This adjustment means the average Social Security retiree beneficiary will see their monthly check increase by about $57 to $1,849.

This increase is calculated by comparing the third quarter Consumer Price Index (CPI) against that of the previous year.

Source: Social Security Administration

Here’s an interesting thought: how well does the CPI accurately reflect the inflation retirees have experienced over the last year?

According to one measure, retirees may be falling behind. The Bureau of Labor Statistics has developed a research Consumer Price Index that attempts to capture the financial experience of older people by re-weighting the goods and services retirees consume. According to the St. Louis Federal Reserve, this metric has seen an inflationary rise of 4.15% between August 2022 and August 2023. This is higher than the Cost of Living Adjustment, meaning some retirees may feel pinched. And of course, residing in the Bay Area means the inflation rate for most goods and services will be higher than the nationwide average. 

The annual Social Security COLA announcement is always a good time to revisit your income and expenses along with your goals to see if you remain on track to accomplish financial objectives.  For more information on Social Security along with examples of various strategies, please visit our Social Security Planning page. 

Please contact us for a no-charge consultation to review your financial situation for you and your family.