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Social Security Raise for 2024 May Fall Short for Older Adults

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Andrew R. Michaud

• August 11, 2023

A recent poll suggests that the projected Social Security raise for 2024 may not provide enough assistance to older adults in covering their still-high costs. According to calculations by The Senior Citizens League, a nonpartisan advocacy group, the projected cost-of-living adjustment (COLA) for 2024 remains unchanged at 3%, based on July's consumer-price-index data. The actual COLA for next year will be announced in October, when the Social Security Administration compares the average consumer-price index from the third quarter of 2023 with the average data from the same period last year.

Potential Impact of the Raise

If the projected 3% raise is implemented, it would increase the average monthly benefit of $1,789 by $53.70. However, it's important to consider that this calculation does not take into account any potential increase in Medicare Part B premiums. These premiums are usually subtracted from most beneficiaries' Social Security checks. The Senior Citizens League estimates that the standard Part B premium for next year will be approximately $179.80 per month, which is an increase from this year's amount of $164.90.

In conclusion, while the projected Social Security raise for 2024 is expected to be 3%, it may not adequately address the high costs faced by older adults. The final decision on the COLA for next year will be announced in October, providing further clarity on the level of support that older adults can expect.

The Impact of Rising Costs on Senior Citizens' Budgets

According to a recent poll conducted by The Senior Citizens League, nearly 8 in 10 respondents have reported that their monthly budget for essential items such as food, housing, and prescription drugs has increased compared to last year. This rise in costs has led to some concerning trends among senior citizens.

For almost one-third of survey participants, the financial burden has become so significant that they have had to postpone necessary medical care or delay filling their prescriptions. This is primarily due to high deductibles, out-of-pocket expenses, and unexpected bills that have accrued over time.

Moreover, it is not just rising costs that are impacting senior citizens' finances but also taxes. A growing number of older adults now find their Social Security benefits subject to federal income taxes. Only individuals with a combined income exceeding $25,000, or married couples filing jointly with a combined income exceeding $32,000, are affected by this tax threshold.

As the costs continue to rise and taxes take their toll, senior citizens are finding it increasingly challenging to meet their essential needs and maintain their financial well-being. The urgency of addressing these issues is becoming more apparent as the financial struggles faced by older adults must be addressed promptly.

Paying Taxes on Social Security Benefits: A Growing Concern for Senior Citizens

According to a recent poll conducted by The Senior Citizens League, an alarming percentage of respondents faced a new challenge during the latest tax season. Approximately 25% of participants revealed that they had to pay federal income taxes on a portion of their benefits for the very first time.

This concerning trend has been attributed to the Cost of Living Adjustment (COLA) that has affected tax returns for the year 2022. With a 5.9% COLA in effect, many individuals found themselves caught in the net of taxable benefits. Unfortunately, this problem is expected to intensify further for the 2023 tax year, as the COLA percentage reaches a staggering 8.7%.

The Senior Citizens League has echoed this sentiment, expressing their concern over the increasing number of people who will find themselves subject to taxes on their benefits. The organization predicts a significant rise in this unfortunate predicament for the upcoming tax year.