Biden no longer cares what Seniors think of him by next year. As such, Social Security recipients are not only takes on their money, but inflation is eating up what measly amount they do get. This while Biden throws hundreds of billions around the world and to illegals here in the U.S.
The anticipated increase in the cost-of-living adjustment (COLA) for Social Security recipients is set to be notably modest next year, as reported by The Senior Citizen’s League (TSCL). This nonpartisan senior advocacy group has projected a 2.63% COLA based on the latest data from the Labor Bureau’s Consumer Price Index for Urban Wage Earners (CPI-W). If this projection remains consistent through October, when the official COLA announcement is made, it will mark the smallest increase since the 1.3% rise in 2021.
The Social Security COLA might be 3% this year. But is this enough for seniors?
Many surveys show retirees are struggling to stay afloat in their golden years.
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— Liberty Nation (@libertynation) June 13, 2024
Social Security and Supplemental Security Income (SSI) recipients receive annual COLA increases aimed at maintaining their purchasing power in the face of inflation. These adjustments are calculated using the CPI-W, which tracks the price change of everyday consumer goods and services. Despite this, many seniors have expressed concerns that the CPI-W does not adequately reflect their spending patterns, particularly in the realms of food and housing.
In a recent TSCL report, feedback from the 2024 Senior Survey highlighted that 69% of respondents felt their expenses outpaced the COLA, with notable increases in food and housing costs. Furthermore, TSCL’s data reveals a sharp 24% rise in the price of the average grocery item since 2020.
Based on the newly released inflation data for June, the 2025 Social Security cost-of-living adjustment (#COLA) could be substantially lower compared to the last two years.
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— NAPA – National Association of Plan Advisors (@NAPA401K) July 12, 2024
While the latest COLA projection of 2.63% is a slight uptick from TSCL’s June estimate of 2.57%, it still falls short of the 3.2% increase in 2024, and is far below the substantial boosts of 8.7% and 5.9% seen in 2023 and 2022, respectively. These larger adjustments were responses to significant inflation, yet seniors report that prices for essential items continue to surge.
TSCL also criticizes the CPI-W as inadequate for assessing the typical expenditures of seniors. Mary Johnson, a policy analyst with TSCL, advocates for a more comprehensive approach to address the financial challenges of living longer in retirement.
Social Security COLA increase for 2025 projected to be lowest in several years https://t.co/VmNE5TN8Ex pic.twitter.com/ytFrHILnOA
— KFOR (@kfor) July 12, 2024
TSCL updates its COLA projections monthly, with the Social Security Administration set to announce next year’s adjustment in October, after evaluating CPI-W data from the summer months.
Major Points:
- Modest Increase: The Senior Citizen’s League projects a 2.63% cost-of-living adjustment (COLA) for Social Security recipients next year, potentially the lowest since the 1.3% rise in 2021.
- CPI-W Concerns: Many seniors argue that the Consumer Price Index for Urban Wage Earners (CPI-W), which determines the COLA, does not accurately reflect their spending patterns, especially on essential items like food and housing.
- Survey Insights: A 2024 survey by The Senior Citizen’s League revealed that 69% of participants experienced household expenses rising faster than their COLA, with significant increases in food and housing costs.
- Inflation Impact: Despite a slight increase from an earlier projection, the predicted COLA remains significantly lower than the more substantial adjustments made in previous years to combat high inflation.
- Need for Change: The organization advocates for a more comprehensive approach to calculating COLA, suggesting that the current CPI-W does not adequately address the financial challenges seniors face during extended retirements.
Lap Fu Ip – Reprinted with permission of Whatfinger News
