The Social Security Administration announced in October 2022 massive CAR push. It was the biggest in more than 40 years, so it was something many seniors hadn’t expected after a string of low growth.
That meant I got a lot more money every month, which became important after the pandemic and skyrocketing inflation. Not only did SSI, retirement, or SSDI benefits increase greatly, but I click Benefits.
However, inflation has not been as high as the prices of food or some services in 2023. So, even if inflation has calmed down, customers and beneficiaries feel that they do not have the same purchasing power.
2024 COLA WILL BE ONLY 3.2%
Since there will only be 3.2% CAR increase, seniors will say goodbye to 8.7% in 2023. Getting 5.5% less can be disappointing, especially when you’ve exhausted your emergency savings.
While retirees get an extra $146 a month on average, that increase is much smaller in 2024. Note that it will only be about $59, which isn’t bad, but it might not be enough.
Some seniors have calculated the amount they need for their medical expenses and CAR jump is too low. What’s more, if you’re on disability benefits, the increase isn’t that big.
For example, if you receive SSDI, the average increase is only $48. FYI, last year’s increase was $119. So it was more than twice compared to 2024 CAR jump
SSI RETIREES WILL ALSO GET A LOWER INCREASE
Supplemental Security Income is also for some low-income pensioners. In addition to income-eligible seniors, disabled adults can also qualify, as can blind people or even some children.
CAR will give only up to $29 more per month to SSI recipients. Since 29 can be the most an increase can give recipients, most will get much less. So it sounds like it’s even worse.
For example, if you get an average check worth $676.60, you’ll only get about $21 extra. Therefore, it is vital to stick to a monthly budget. Otherwise, you risk running out of money before the next SSI check in 2024 CAR arrives
Although there have been some proposals to change the way the cost of living adjustment is made so that older people can take advantage of it, it has not changed so far. Undoubtedly, it is always best to think positive, getting a discount would be much worse. Save that extra cash and make emergency savings instead.