Posted 4/16/2024, 8:02:00 AM
Retirees Face Tighter Budgets as Social Security COLAs Drop Despite Ongoing Inflation
- Social Security's 2023 COLA was 8.7%, but the 2024 COLA dropped to 3.2%, disappointing many retirees struggling with inflation.
- The COLA for 2025 is currently projected to be just 2.6%, another unpleasant surprise for beneficiaries.
- COLAs are based on inflation during Q3 each year, but may lag behind actual inflation experienced by retirees.
- Despite moderating inflation overall, prices rose 3.5% in March, reducing buying power for retirees getting a 3.2% COLA.
- Retirees may need to budget carefully and find ways to supplement their income if COLAs continue to disappoint.