Merakyat.org – High inflation has been a significant concern for many, especially when it comes to the financial well-being of seniors. This year, due to the soaring inflation rates, Social Security checks saw the most substantial annual cost-of-living adjustment in several decades, with an impressive 8.7% increase.
But what does 2024 hold for these checks?
The exact figure remains uncertain for now. The Social Security Administration relies on third-quarter data to determine the adjustment, meaning the exact increase won’t be clear until mid-October. However, financial experts are weighing in with their predictions. They believe that the increase for next year will likely be considerably less than this year’s, possibly less than half. As inflation is expected to ease, the anticipated cost-of-living adjustment (COLA) for 2024 is projected to be between 3% and 3.5%.
To put this into perspective, consider the average monthly check, which currently stands at approximately $1,800. A 3% increase would add roughly $60 to this amount. While this might sound like a modest boost (equivalent to two pizzas, as some might jestingly put it), it’s essential to look at the broader picture.
For seniors, this situation presents both pros and cons. An additional $60 might not seem like much, but a 3% COLA indicates a decline in inflation. This decrease is beneficial for those living on fixed incomes, as their purchasing power won’t be eroded as quickly.
Lastly, for those concerned about potential disruptions due to a possible government shutdown, there’s some reassuring news. Such a shutdown won’t affect the delivery of Social Security checks. These payments are secured through permanent appropriations, making them immune to annual legislative changes. In other words, they’re “lawmaker-proof.” It’s a small but significant relief in these uncertain times.