Social Security Announces 2024 COLA

Social Security Announces 2024 COLA

November 07, 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, though individual benefits may vary.

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

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.

The annual Social Security COLA announcement is always a good time to revisit your income and expenses to see if anything has changed from the strategy we created. If I can help with that conversation, I hope you’ll contact me today.

About Terrell Dinkins, MBA, ChFC®, RICP®

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Terrell Dinkins, MBA, ChFC® , RICP® is an investment adviser representative of and offers investment advisory services through OBN Wealth Advisors, LLC, a registered investment adviser offering advisory services in the State of Georgia and other jurisdictions where registered or exempted. Main Office: 950 Eagles Landing Pkwy, Suite 216, Stockbridge, GA 30281. Tel: 404-723-9780. Website: OBN Wealth Advisors. Image courtesy of Canva Pro.