Social Security Recipients Receive Huge Pay Bump

( – Social Security benefits are set to increase by 3.2% in 2024, a notable change compared to the larger increments observed in the past two years. The Social Security Administration conveyed that this adjustment is a response to the ongoing moderation of inflation.

Commencing in January, over 66 million Americans who receive Social Security will see an uptick in their payments. Jo Ann Jenkins, AARP chief executive, stated, “Retirees can find some solace in knowing they will soon witness an augmentation in their Social Security allocations to help them cope with the rising cost of living. We understand that older Americans are still feeling the impact when purchasing essentials, making every dollar crucial.”

This increase is a significant drop from the 8.7% rise observed in 2023, which marked the highest increase in four decades. Nevertheless, it surpasses the 2.6% average rise witnessed over the past twenty years.

This boost translates to an approximately $59 monthly increase for the average retiree benefit of $1,907. However, retirees express that despite this adjustment, they are still grappling with the challenges posed by the persistently high inflation rates.

According to a recent survey by the Senior Citizens League, 68% of retirees stated that their household expenses remain higher than a year ago, even with the easing of inflation. This predicament has persisted throughout the last year.

Mary Johnson, Social Security and Medicare policy analyst at the Senior Citizens League, remarked, “The apprehension that retirement income won’t suffice to cover essential costs in the coming months is a primary worry for 56% of the survey respondents. Social Security reductions are an even more significant concern.”

The annual alteration in Social Security is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from July, August, and September.

Advocacy groups have urged Congress to pass legislation that would tailor this adjustment to inflation specifically for seniors, using metrics like the Consumer Price Index for the Elderly (CPI-E), which focuses on the spending habits of households with individuals aged 62 and older.

Mary Johnson emphasized, “An inflation measurement that does not adequately account for the portion of income spent on healthcare tends to underestimate the actual inflation rate and shortchange the Social Security COLA.”