The cost-of-living adjustment for Social Security will rise 3.2% in 2024, compared with an 8.7% increase in 2023, the Social Security Administration said Thursday. In 2023, Social Security recipients received the highest COLA in more than 40 years amid rising inflation. The average COLA increase over the last 20 years is 2.6%, according to the Senior Citizens League, a pro-senior think tank.
Some other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $168,600 from $160,200. “Social Security’s COLA is great news for beneficiaries. It will help them keep up with rising costs. Unlike Social Security, the value of private savings — like 401(k)s and IRAs — erodes over time. Most pensions aren’t adjusted for inflation, either. Social Security is the only form of retirement income that keeps up with inflation,” said Kathleen Romig, senior policy analyst at the Center for Budget and Policy Priorities. COLA is not a raise – it merely helps the roughly 67 million Social Security beneficiaries catch up with inflationary pr …
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