Retirees eagerly await the announcement of the cost-of-living adjustment (COLA) for Social Security benefits, which is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) [9582dac4]. The COLA helps recipients keep up with inflation and can offset rising costs of healthcare, housing, and other essential needs [9582dac4]. The 2024 COLA is estimated to be 3.2 percent, which will affect various programs that receive monthly payments from the Social Security Administration [9582dac4]. While this increase is significant, critics argue that it may not be sufficient to keep up with inflation in the US economy [63c1e1de]. Many seniors who rely solely on Social Security are struggling to make ends meet and spending a significant portion of their income on rent [63c1e1de]. Despite the increase in payments, concerns about the financial outlook for seniors persist due to the condition of the trust fund backing the benefit program [177be7e0]. A survey found that 68% of participants reported household expenses being at least 10% higher than a year ago, and 56% worry that retirement income will not be sufficient to cover living expenses [177be7e0]. Additionally, nearly 60% expressed concerns about potential benefit cuts [177be7e0]. It is expected that more beneficiaries will become liable for federal income taxes on their Social Security benefits in the upcoming tax season [177be7e0].
Retirees are encouraged to stay informed about the COLA announcement and to plan their budgets accordingly [9582dac4]. By knowing the COLA for the upcoming year, retirees can make informed decisions about their retirement finances [9582dac4]. It is important for retirees to utilize the resources provided by the Social Security Administration, such as checking their website or contacting their local Social Security office for more information [9582dac4].
The 2024 COLA increase and new Social Security benefits and payment dates are significant developments for retirees, as they impact their financial well-being and retirement planning [9582dac4]. It is crucial for retirees to stay updated on these changes and to take advantage of the resources available to them [9582dac4].
Social Security benefits pump a large chunk of change into the US economy – with about $1.4 trillion going to more than 67 million Americans last year alone. The program, equivalent to 5% of the country’s gross domestic product, provides a cash infusion that helps keep the economy afloat – recipients purchase goods and services with their benefits resulting in more revenue for businesses and jobs for workers. That’s why it’s a big deal when Social Security recipients receive their annual cost-of-living adjustment. Starting in January they’ll see a 3.2% increase in their Social Security checks, that’s a much smaller increase than the inflation-fueled boosts of the past two years, the Social Security Administration announced last week. [7e993eca]
Social Security retirement benefits in Tennessee will increase by an average of $50 per month starting in January 2024. The increase is intended to keep up with inflation and help beneficiaries cover their expenses. The Social Security Administration will notify beneficiaries by mail about their benefit amount in early December. Additionally, there will be an earnings limit for individuals who start receiving Social Security retirement benefits before reaching their full retirement age while still working. The earnings limit for those under their full retirement age will increase to $22,320 in 2024, and for those reaching their full retirement age, it will increase to $59,520. Tennessee residents are advised to set up a personal account on the Social Security Administration's website to manage their benefits. [831b6e6a]