Low Social Security COLA Hurts Seniors as Inflation Remains High

Social Security COLA for 2024 is only 3.2%, while inflation is likely to be much higher. This will hurt seniors.

Inflation figures show prices rose 4.9% annualized from August to September. Services inflation is even higher at 7.4%.

Despite Fed interest rate hikes, inflation remains stubbornly high. Markets now expect rates to stay high through 2024 election.

COLA adjustments are always backward looking, so they undercompensate for current inflation.

Higher inflation benefits Social Security finances in the short run but hurts seniors through inadequate COLAs and higher taxes on benefits.