Jul 25, 2023
New estimates are in for the Social Security cost of living adjustment (COLA) in 2024.
Using inflation data from June, The Senior Citizens League (TSCL) says the COLA could be 3% next year. This would increase the average monthly benefit for Social Security recipients by $53.50, from $1,787 to $1,840.
Don't miss
- 36% of millionaires say it’ll ‘take a miracle’ to retire amid rising costs and a shaky market — here are the best shock-proof assets to grow your nest egg
- Are you ready for your first year of retirement? Here are 4 things you might not expect — but definitely need to prepare for
- Commercial real estate has outperformed the S&P 500 over 25 years. Here's how to diversify your portfolio without the headache of being a landlord
Must Read
- The ultra-rich use these 5 real estate strategies to build wealth while they sleep — you can start with just $100
- Here’s the average income of Americans by age in 2026. Are you keeping up or falling behind?
- Insurance companies profit most from drivers who auto-renew without shopping around. Comparing 100+ quotes takes 2 minutes and costs nothing
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
When will the 2024 COLA be announced?
The official 2024 COLA will be announced in October and will be based on inflation data from July, August and September of this year.
Thanks for subscribing!
Read the best of Moneywise in 5 minutes or less.
By signing up, you accept Moneywise Terms of Use, Subscription Agreement, and Privacy Policy.
If inflation continues to slow like it did in June, the COLA could end up being lower than the estimated 3%.
Is 3% enough?
The impact of any increase to the COLA will depend on what happens to Medicare Part B premiums, which are expected to rise by around $10 per month or more in 2024, according to the 2023 Medicare Trustees Report.
Advertisement
Medicare premiums went down in 2023, giving seniors more breathing room — but that relief will be short-lived. The report estimates the average annual Part B premium will increase from $164.90 to $174.80 in 2024.
TSCL says insurance premiums could climb even higher due to “significant new costs”.
According to TSCL, Medicare’s coverage of a new Alzheimer’s drug could add another $5 onto the Part B premium for all recipients, potentially raising the 2024 premium to about $179.80 per month. The drug — Lecanemab — is expected to cost $26,000 per year for those without insurance.
If inflation continues to slow, the 2024 COLA could fall short of Medicare Part B premium increases, potentially leaving many who rely on Social Security benefits to make up the difference next year.
You May Also Like
- JP Morgan sees gold hitting $6,000/oz before 2027 — and a Gold IRA lets you hold the physical metal while deferring the tax bill. Get your free guide from Priority Gold
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
Bethan Moorcraft is a reporter for Moneywise with experience in news editing and business reporting across international markets.
