Potential 3.1% Increment in 2024 for Social Security Cost-of-Living Adjustment

According to the Senior Citizens League, Social Security beneficiaries purchasing power has fallen by a total of 36% since 2000. This year alone, high inflation has caused egg prices to significantly increase. Other categories that the group found to have risen sharply in cost over the past year include apples, bread, coffee and dental care. To live as well as they did in 2000, seniors today would need an additional $516.70 per month, the Senior Citizens League found. The findings showed an improvement compared to last years 40% loss though it is still one of the deepest reported losses, as per the groups analysis.

Besides the rising costs of eggs, other categories that have gained in cost over time are prescription drugs, heating oil, dental services, and Medicare Part B premiums. Fortunately, the Social Security beneficiaries will have at least some respite, with an all-time high cost-of-living adjustment (COLA) this year estimated at over $140 per month. This extra money could prompt higher levels of spending among older Americans potentially worsening the fight against inflation. Unfortunately, the adjustment is still lower than the rate of inflation, meaning that the inflation continues to effect older Americans’ ability to survive in today’s economy.

David Tinsley, a senior economist at Bank of America Institute, stated previously that “the average retiree has found living with these high rates of inflation extremely difficult,” and the findings of the Senior Citizens League continue to reinforce the economic struggles that many older Americans experience due to high costs of living. Older Americans` struggles, such as higher medical costs and fewer job opportunities harm not only their quality of life but also their health.

As a result of these economic challenges, older adults have to adjust their living standards to survive. With over 10,000 baby boomers turning 65 every day (Pew Research Center), it is crucial that policy-makers prioritize addressing the economic challenges that seniors are facing today and will face in the future. Creating policies that target and support older Americans, such as Affordable Care Act, support for small businesses that hire older adults, and increased funding for community-based organizations that serve the aging population could help to alleviate some of these issues.

With an increasingly aging population in the US, fixing the economic issues that face older Americans is more crucial than ever. With that said, policy-makers must focus on creating and implementing policies that address the needs of the aging population while also remaining sustainable for future generations.