Millions of seniors will receive a 3.2% increase in their monthly Social Security checks starting in January 2024, according to the Social Security Administration. However, for seniors like Suzanne Mencer, this increase is still not enough to cover their living expenses. Mencer, who works full-time, says she will never be able to retire solely on her Social Security benefits. Despite the increase, the rising cost of living and inflation continue to outpace the growth in seniors’ income.
The Social Security Cost-of-living adjustment, or COLA, is intended to help retirees keep up with inflation. However, even with the 3.2% increase, some seniors find it challenging to make ends meet. Mencer highlights how the cost of living always seems to stay ahead of what retirees have, and she has been working since she was 16 years old and still cannot afford to retire comfortably. Finance Professor Ajay Patel warns that if inflation spikes again, the COLA increase may be insufficient to cover the actual price increase in 2024, further impacting seniors’ financial stability.
The Social Security Administration provides a monthly check to nearly 50 million retired Americans, with the average payment being approximately $1,848 in 2023. While the 3.2% increase will provide some relief, many retirees are seeking additional sources of income to supplement their Social Security benefits. The rising cost of living has led more seniors to look for employment opportunities. Despite the increase, it remains clear that Social Security benefits alone are not enough for many retirees to cover their expenses, prompting them to seek alternative ways to support themselves financially.
