As of 2022, racial and ethnic minorities made up 1 in 4 adults aged 65 and older, highlighting a significant demographic shift among retirees in the United States [218b4529]. The average 65-year-old can expect to live another 18 years on a median income of $29,740, yet many face financial challenges that threaten their quality of life [218b4529]. For instance, the average yearly Social Security benefits for Black men aged 65 and older was $15,345, while for Black women it was $13,755. In contrast, the average benefits for all men and women were $18,910 and $14,824, respectively [218b4529]. This disparity underscores the ongoing racial wealth gap that affects retirement security for many Black retirees.
In light of these challenges, the Social Security Administration announced a 3.2% cost-of-living adjustment (COLA) for 2024, which will increase average monthly benefits by approximately $50 for individuals [9582dac4]. However, critics argue that this increase may not sufficiently address the rising costs of living, particularly for those who rely heavily on Social Security [63c1e1de]. AARP warns that after expected Medicare increases, net gains for retirees could be as low as $10.20, further complicating the financial landscape for older Americans [218b4529].
The financial outlook for Black retirees is particularly concerning. A report indicates that Black households have a median retirement wealth of $119,000 compared to $273,500 for White households, illustrating significant racial disparities in retirement wealth [218b4529]. The poverty threshold for a single person in 2024 is set at $15,060, raising alarms about the growing number of retirees living in or near poverty [218b4529].
As the Social Security program continues to evolve, there are calls for Congress to address its future solvency and ensure that benefits can adequately support all retirees, particularly those from marginalized communities [218b4529]. The upcoming COLA increases and changes in Social Security benefits and payment dates are crucial for retirees as they navigate their financial futures [9582dac4]. It is essential for retirees to stay informed and utilize available resources to manage their benefits effectively [9582dac4].