The Social Security Administration releases its 2024 cost-of-living adjustment (COLA) tomorrow, October 12, impacting millions of retirees, with the figure expecting to show a 3.2% increase.
In 2023, Social Security benefits got an 8.7% COLA, the largest cost-of-living adjustment since 1981. According to the United States Social Security Administration (SSA), "COLAs are based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)." The jump in COLA for 2023 correlated with a jump in CPI, which peaked at a 9.1% rate in June 2022. But a series of interest rate hikes from the Federal Reserve has helped to lower inflationary pressures somewhat in recent months. Currently, inflation is at a still-elevated rate of 4.3% as of August's CPI figures, up from the 3.2% rate in July and 3.0% rate in June. So, when inflation starts to cool, that means a lower cost-of-living adjustment for Social Security recipients.
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Social Security COLAs from 2009-2023
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