The annual announcement of the Social Security cost-of-living adjustment (COLA) has been delayed due to the ongoing government shutdown. Originally set for Wednesday, the 2024 COLA announcement has been moved to October 24th. This delay is linked to the delayed release of the September Consumer Price Index (CPI), which is used to calculate the annual benefit increase based on inflation.
The postponement is highlighting the financial planning difficulties caused by the shutdown, which is entering its third week with no resolution in sight. Projections from organizations like the Senior Citizens League and AARP suggest an increase of around 2.7%. Social Security benefits are received by approximately 70 million Americans, including retirees, disabled individuals, and children.
Some beneficiaries and advocates are concerned that the projected increase will not be sufficient to cover rising living costs. They argue that the current CPI calculation, which includes a broad range of goods and services, does not adequately reflect the expenses of older Americans, particularly healthcare costs. Legislation has been proposed to use the Consumer Price Index for the Elderly (CPI-E), which specifically tracks the spending patterns of older individuals, to determine the COLA.
Despite the delay in the announcement, Social Security Administration beneficiaries are expected to receive their adjusted... download the app to read more
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