CW: Poverty
According to the Senior Citizens League, a nonpartisan advocacy group, retirees and disabled people could see a cost of living adjustment in the 3% area, which is less than half of the COLA boost they saw in 2023. The group examines inflation statistics to estimate potential COLA changes in the future.
Another estimate is scheduled to be announced on September 13 and might be higher or lower based on new August inflation data. In mid-October, the exact percentage for the COLA will be revealed.
This year’s COLA increased Social Security and Supplemental Security Income benefits by 8.7%, the largest increase since 1981, when the inflation adjustment was 11.2%.
The adjustments were small before the COVID-19 pandemic hit, and the supply chains collapsed. Additionally, federal stimulus payments saw an influx of cash come into the economy. In 2020, the inflation adjustment for Social Security benefits was 1.6%. It was followed by a 1.3% payment increase in 2021.
This comes as Social Security payments are on the verge of being cut over the next decade. The reduction could be significant according to a new analysis. Unless something changes, a newly retired couple could see their monthly checks decrease by $1,450 a month. Unfortunately, this means retirees could see their annual checks decrease by $17,440 a year.
These cuts will be devastating for millions of Americans as the cost of living is still high. According to Zumper’s July rent report, rate hikes are slowing but not dropping in many of the country’s 100 largest cities, The national median rent for a one-bedroom apartment in July was $1,506, a tenth of a percent more than in June and 3.9 percent higher than in July of last year.
Making matters worse, the average family has been on the waiting list for affordable housing for 2.5 years nationwide.
According to the Bureau of Labor Statistics, the Consumer Price Index was 3.2% in July, up from 3% in June. Food prices were among the primary contributors to last month’s increase once again. Food prices at home grew 3.6% in the last year, but food prices elsewhere, such as in restaurants, jumped 7.1%.
Everyone should be able to afford all of their basic expenses. Social Security benefits must provide a livable income for the millions of Americans who depend on them. Nobody should be hungry or homeless.
Sources:
Kolomatsky, Michael. “Rent Increases Are Softening, but Not Everywhere.” The New York Times, The New York Times, 3 Aug. 2023, http://www.nytimes.com/2023/08/03/realestate/rent-increase-us.html.
Picchi, Aimee. “Social Security Checks Face $17,400 Cut If Program Isn’t Shored up, Study Says.” CBS News, CBS Interactive, 14 Aug. 2023, http://www.cbsnews.com/amp/news/social-security-check-17400-cut-trust-fund-depleted/.
Tompor, Susan. “Social Security Cola Increase Will ‘return to Reality’ in 2024 after Jump, Predictions Say.” Detroit Free Press, Gannett, 16 Aug. 2023, http://www.freep.com/story/money/personal-finance/susan-tompor/2023/08/16/social-security-cola-adjustment-increase/70587128007/.
Wile, Rob. “Inflation Rate Hit 3.2% in July: Here’s Why a Return to ‘normal’ Prices Is a Long Way Off.” NBCNews, NBCUniversal News Group, 10 Aug. 2023, http://www.nbcnews.com/business/economy/inflation-rate-july-2023-how-high-low-will-interest-rates-rise-again-rcna99015.