Low COLA Consequences: According to a new poll by legal firm Atticus, over 40% of elderly persons want to look for work as a result of the Social Security payments’ small 3.2% cost-of-living (COLA) rise for 2024. Over 60% are not thrilled about the increase from the previous year.
The low cost-of-living adjustment (COLA) for 2024 is a major source of frustration and financial hardship for this demographic, as indicated by the poll. It also highlights the urgent need for stronger policies to assist senior citizens going forward.
Just over half of senior adults feel optimistic that Social Security will be able to meet their long-term needs, especially in light of the growing cost of living. Nearly two out of every five of them want to look for work.
For Social Security recipients, the 3.2% increase in the COLA, which is significantly smaller than the 8.7% increase in 2023, translates to an extra $55 on average each month beginning in January. It’s significant to remember that last year’s 8.7% gain was the highest since 1981.
Social Security Benefit for Age 65: Unveiling the other types of benefits
Low COLA Consequences
The majority of seniors don’t like the COLA rise.
- Of the senior population, 62% are not happy with the 3.2% COLA for 2024.
- Approximately 3 out of 5 seniors already face financial difficulties.
- Approximately 70% of seniors who are alone struggle to make ends meet on their current Social Security benefit.
- Due to the tiny 2024 COLA hike, nearly two out of every five seniors want to look for work.
- Of seniors without children, 47% are thinking about getting a job to help with their finances.
- Just 52% of seniors are certain that the programme will be able to meet their long-term needs.
2023 Increase
- Insurance: a 7% increase in health and a 19% increase in auto
- Food items (up 5.8%).
- The average median sale price of housing in 2023 was greater than it has ever been.
- Health insurance rates, which will rise by 7% in 2023
Many seniors are concerned that their way of life may not be able to continue in 2024 and beyond despite the double-digit gains in the past year. This is particularly true if your only source of income is Social Security.
In reality, seniors receiving Social Security are more likely to use community resources or assistance programmes (16%), cut down on basic expenditure (36%), and reduce discretionary spending (64%), as a result of inflation and changes in benefits.
However, it is for the upcoming year. In the future, 68% of seniors believe that COLA adjustments may not be sufficient to keep up with the real cost of living, and 61% are not confident that the Social Security programme will be solvent and sustainable over the long run.
