Americans on Social Security benefits have a general feeling of disappointment. The 2024 COLA is not at all what seniors expected. Especially after having to deal with exorbitant prices for food, goods, and services in 2022 and 2023.
Despite the fact that it was October 12 when the Administration released the new 2024 COLA increase, many still cannot believe their benefits will grow so little.
What is more, they must wait until January 1, 2024, to cash their new monthly payment. While those on SNAP benefits can receive their new amounts from October 1, 2023.
HOW MUCH HAVE SOCIAL SECURITY BENEFITS INCREASED DUE TO 2024 COLA?
SSA stated that the 2024 COLA increase would be just 3.2%. Therefore, it is not even half the amount of COLA for 2023. Bear in mind it was the highest in decades and reached a whopping 8.7 percent.
Social Security uses the Bureau of Labor and Statistics Consumer Price Index to calculate the new 2024 COLA. As they used the Consumer Price Index for Urban Wage Earners and Clerical Workers, some experts believe it may not be an accurate figure for retirees.
In fact, retirees do not have the same expenses as a person who is still at work and needs to go to work every day. Eating out, transport, and other expenses may be different.
Many seniors have the feeling that prices have kept growing. Some even claim that they need about ten percent extra to buy or pay for the same things. That is why the 2024 COLA increase is a letdown.
WHAT IS ANOTHER CAUSE FOR DISAPPOINTMENT APART FROM THE 2024 COLA?
What is more, some seniors have lost their benefits or have had cuts. Keep in mind the 2023 and 2022 COLAs increased benefit amounts a lot. Then, many exceeded the earnings limits to cash some benefits.
Others may have had to pay taxes because they have combined incomes and have exceeded the limits. It is true that this increase may not affect many, but if you are close to the threshold you must be careful.
Otherwise, you may end up paying taxes. Take this information into account if you are on self-employment and get Social Security benefits. Make sure you do not get a combined income of between $25,000 and $34,000 in 2023.
If so, you may have to face taxes on up to 50% of your benefits. And it could be much worse, especially if you go over the $34,000 limit. It could be up to 85% of your monthly benefits.