The ongoing government shutdown has pushed the announcement of the 2024 Social Security Cost-of-Living Adjustment (COLA) to October 24, as it will coincide with the September Consumer Price Index (CPI) release, which has also been delayed. This change impacts about 70.6 million beneficiaries, including retirees and people with disabilities, who rely on these annual adjustments tied to inflation.
Many beneficiaries are concerned that the upcoming 2.7% increase may not sufficiently cover rising costs. Advocacy from retirees, like 75-year-old Sue Conard, highlights the inadequacies of the current CPI measure for calculating COLA, as it overlooks costs specific to older Americans, particularly medical expenses. Some lawmakers are pushing for a shift to the Consumer Price Index for the Elderly (CPI-E), which better reflects seniors’ spending patterns.
Despite proposals to change the COLA calculation, previous efforts have stalled in Congress. AARP’s CEO emphasized the importance of COLA not only as an income source but as vital for maintaining dignity and independence for many older Americans. Beneficiaries are already struggling with rising costs, such as grocery prices.
The delay in the COLA announcement coincides with broader funding concerns for Social Security, as reports indicate the program’s trust fund may face shortfalls by 2034, leading to significant reductions in benefits. Additionally, staffing cuts have placed further strain on the Social Security Administration, complicating claims processing. Notifications about the new benefit amounts are expected to begin in early December.
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