Social Security COLA Boost Aims to Ease Financial Burden for Seniors
The 3.2% cost-of-living adjustment (COLA) for 2024, while surpassing the 20-year average, aims to alleviate the financial burden of over 70 million retired senior citizens and disabled workers facing rising prices. (Photo: bnn.network)
Seniors’ Ongoing Concerns During the 2024 Social Security COLA Increase
According to finance.yahoo.com, Social Security beneficiaries will see a 3.2% cost-of-living adjustment (COLA) in 2024, surpassing the 20-year average of 2.6%, although significantly less than the 8.7% boost experienced in 2023. This increase, which will provide over $50 extra per month to the average benefit of $1,848, aims to alleviate the financial burden for the more than 70 million retired senior citizens and disabled workers who have faced rising prices, reducing their financial burden.
However, older adults remain concerned about their finances and potential Social Security benefit cuts, with some retirees expected to pay taxes on their benefits for the first time due to the higher COLA in recent years, adding to their financial burden. The COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for July, August, and September, and the increase seeks to help retirees cover their rising daily living expenses.
Nonetheless, retirees’ pessimism about their finances persists, as household expenses continue to rise, especially in regions with higher inflation rates, further increasing their financial burden. Concerns about inadequate retirement income coverage for essentials remain a top worry for seniors, according to a retirement survey by The Senior Citizens League.
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Financial Pressures Amplified by Medicare Premiums and Tax Implications
Rising Medicare premiums for 2024, which are expected to be announced in November, may further impact retirees’ budgets, as the Social Security Administration deducts Medicare Part B premiums from their benefits, exacerbating their financial burden.
The 2024 Medicare Part B premium is projected to increase by about $5 per month to approximately $179.80 per month, adding to retirees’ financial burden. Additionally, tax implications may arise for Social Security recipients due to the higher COLA, with more beneficiaries likely to be liable for federal income taxes on their benefits, potentially compounding their overall financial burden.
