• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick As inflation cools, Social Security could pay out a smaller COLA increase
Editor's Pick

As inflation cools, Social Security could pay out a smaller COLA increase

by July 12, 2024
by July 12, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Price growth is cooling across the economy. While that is good news for consumers, the timing of this progress on inflation could end up short-changing seniors and other Social Security recipients when they learn their annual cost-of-living increase later this year.

According to the latest estimate from The Senior Citizens League, which regularly forecasts Social Security’s cost-of-living adjustment, or COLA, Social Security recipients can expect their monthly checks to increase by 2.63% — essentially unchanged from the 2.57% it forecast last month.

The Social Security Administration calculates the annual COLA change by taking the average measure of the Consumer Price Index for urban wage earners and clerical workers, or CPI-W — a slightly different version of the regular CPI — for July, August and September of the given year. It typically announces the official COLA change in October.

But using that methodology means Social Security recipients’ checks can start falling behind the overall pace of inflation, according to The Senior Citizens League: Price surges can occur — and abate — at any time of the year, and the COLA may not account for those changes, said the organization’s Social Security and Medicare statistician, Alex Moore, managing partner at Blacksmith Professional Services.

That is what has been happening in the pandemic and post-pandemic economy: From January 2020 to December 2023, the CPI-W increased exactly 20% — while the COLA increases have totaled only 19%.

A matching increase over that period would have netted Social Security recipients an extra $10 in their monthly payments by 2024, according to NBC News calculations.

For fixed-income recipients, every bit counts: In the league’s most recent membership survey, 34% of retirees said they had visited a food pantry or applied for food stamps over the last 12 months.

“About 50% of senior households depend on Social Security as the difference between [staying out of] poverty,” Moore said.

This post appeared first on NBC NEWS
You Might Also Like
  • Lara Trump to host weekend show on Fox News
  • Elon Musk’s brain implant company Neuralink announces FDA approval of in-human clinical study
  • Amazon to invest another $4 billion in Anthropic, OpenAI’s biggest rival
  • Banking issues and scams are on the rise, leaving customers facing an uphill battle for help
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Pepsi and Delta say consumers are hunting for value
next post
Biden barely clearing the bar was the worst-case scenario for Democrats

You may also like

Subway is adding deli slicers to give customers freshly sliced...

July 7, 2023

Nearly 10,000 people have offered to change their names to...

August 9, 2023

U.S. unemployment rate ticks up to 4.3% amid signs of...

August 5, 2024

Biden administration to require advanced safety tech on all new...

April 30, 2024

Credit cards are charging more ‘excess’ interest than ever, consumer...

February 23, 2024

Macy’s says employee hid up to $154 million in expenses...

November 25, 2024

NTSB grills Boeing execs on safety culture and retaliation allegations

August 8, 2024

Three Disney films could top $1 billion this year after...

August 9, 2024

FTC bans fake online reviews, inflated social media influence; rule...

August 15, 2024

How on-time rent payments can help ‘credit invisible’ consumers be...

July 18, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,633 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,303 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Bissell recalls 3.2 million handheld steam...

    July 23, 2024

    Chick-fil-A asks customers to throw out...

    March 7, 2024

    Walmart pulls back on DEI efforts,...

    November 26, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here