The 3.2% Boost in Social Security Benefits for 2024
The Social Security Administration has recently broken the news: over 71 million Americans, encompassing Social Security and Supplemental Security Income beneficiaries, are set to receive a 3.2% Cost-of-Living Adjustment (COLA) in their benefits for 2024.1
Understanding the Medicare Part B Impact
However, it's crucial to consider the other side of the coin—Medicare Part B premiums. Generally, these premiums get deducted directly from your Social Security checks. According to the Medicare trustees, the average monthly premium for Medicare Part B will rise to $174.70 in 2024, a leap from $164.90 in 2023. Also, the annual deductible will see an increase to $240, up by $14 from last year's $226.2
Inflation: The Invisible Challenge
Let's not forget that many retirees are still dealing with the effects of inflation. The Bureau of Labor Statistics has formulated a research Consumer Price Index to better capture the financial reality for older individuals. As per the St. Louis Federal Reserve, this index registered an inflationary surge of 4.15% between August 2022 and August 2023.3
The Overall Financial Picture
While the 3.2% COLA for 2024 is certainly welcome news, it's vital to weigh its impact alongside the rise in Medicare Part B premiums to get a more comprehensive view of your financial landscape.
If you have questions about the COLA or Medicare, feel free to reach out. Our office has useful resources that can point you in the right direction.
CMS.gov, October 12, 2023
FAQ.SSA.gov, October 12, 2023
AARP.com, October 12, 2023