Social Security benefits will increase by 3.2% in 2024 as inflation moderates

abcnews.go.com:

The acting Social Security commissioner says a 3_2% increase in benefits next year “will help millions of people keep up with expenses."

WASHINGTON — Millions of Social Security recipients will get a 3.2% increase in their benefits in 2024, far less than this year's historic boost and reflecting moderating consumer prices.

The cost-of-living adjustment, or COLA, means the average recipient will receive more than $50 more every month beginning in January, the Social Security Administration said Thursday. The AARP estimated that increase at $59 per month.

“This will help millions of people keep up with expenses,” said Kilolo Kijakazi, Social Security’s acting commissioner.

About 71 million people — including retirees, disabled people and children — receive Social Security benefits.

Thursday's announcement follows this year’s 8.7% benefit increase, brought on by record 40-year-high inflation, which pushed up the price of consumer goods. With inflation easing, the next annual increase is markedly smaller.

“Compared to last year's 8.7% increase, this is going to feel small and the perception is that its not keeping up with the inflation and the higher costs that retirees are still seeing,” said Martha Shedden, president of the National Association of Registered Social Security Analysts.

On top of that, an anticipated increase in Medicare premiums for 2024 will eat into the Social Security cost-of-living bump.

Medicare hasn’t announced the increase for traditional Medicare, but said the cost of Medicare Advantage plans is expected to remain stable.

Still, senior advocates applauded the annual Social Security adjustment.

“Retirees can rest a little easier at night knowing they will soon receive an increase in their Social