OAN’s Elizabeth Volberding
11:10 AM – Thursday, October 12, 2023
Social Security benefits will be rising by 3.2% in 2024, following the 8.7% rise from the year prior.
On Thursday morning, the United States Social Security Administration (SSA) declared that Social Security payments will grow 3.2% beginning in 2024.
This will add approximately $50 monthly to the average SSI benefits that Americans are receiving.
The annual growth is referred to as cost-of-living adjustments, also known as COLA. Periodically, COLAs are released to account for growing living expenses brought on by variables like inflation.
The SSA announced that those on Social Security currently will begin to receive the growth of payments on December 29th, 2023.
“Social Security and Supplemental Security Income (SSI) benefits will increase in 2024, and this will help millions of people keep up with expenses,” said Kilolo Kijakazi, acting commissioner of Social Security.
Based on an average of the inflation readings for the months of July, August, and September, the cost of living adjustment can be determined.
It is specifically based on the Bureau of Labor Statistics’ publication of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
According to data released on Thursday by the Bureau, the CPI-W increased by 2.6% in July and 3.6% in September.
“Retirees can rest a little easier at night knowing they will soon receive an increase in their Social Security checks to help them keep up with rising prices. We know older Americans are still feeling the sting when they buy groceries and gas, making every dollar important,” explained Jo Ann Jenkins, CEO of the nonprofit American Association of Retired Persons, in an emailed statement.
However, the Senior Citizens League, which is an advocacy group for elderly Americans, has claimed that more substantial growth is required for Social Security benefits.
The group explained that the cost of goods and services that the payment receivers are in need of is increasing much more frequently than the Social Security benefits.
According to the Senior Citizens League, people who retired before the year 2000 would need an extra $500 in payments per month in order to get back the purchasing power that they originally had in 2000.
67 million American citizens have been receiving Social security benefits in 2023, stated by the SSA.
The majority of these individuals are retirees, as at least 90% of those over the age of 65 were receiving those benefits as of June 30th.
Inflation has skyrocketed due to a wide range of factors, such as pandemic incentive payments, broad supply chain issues, and a rise in shopping and spending. The inflation has also prompted the Federal Reserve to increase interest rates rapidly.
As a result, the benchmark U.S. interest rate reached the largest amount it has been in over 20 years.
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