THE decline in the inflation rate is welcome news for anyone who needs to pay for groceries, gas or rent. But if you're retired, you may be disappointed to learn how this development could affect your Social Security benefits.
The Kiplinger Letter forecasts that Social Security beneficiaries will receive a cost-of-living increase of 3% for 2024, down from 8.7% in 2023 and 5.9% in 2022. A 3% cost-of-living adjustment will increase the average monthly benefit for retirees to about $1,892, up from $1,837.
The forecast is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which rose at a 12-month rate of 3% in June, down from 4% in May and 4.9% in April. The 2024 cost-of-living adjustment is based on the CPI-W in the third quarter of 2023, so if inflation rises before October, the COLA will be adjusted upward.
While the forecast gives retirees a preview of what could happen to their benefits next year, they won't get the total picture until this fall, when the Centers for Medicare and Medicaid Services (CMS) announces Medicare Part B premiums for 2024. Most retirees have their Part B premiums automatically deducted from their Social Security payments, so a big increase in premiums can significantly dampen any cost-of-living increase. That tends to hit people with the lowest Social Security benefits the hardest, says Mary Johnson, policy analyst for the Senior Citizens League.
هذه القصة مأخوذة من طبعة October 2023 من Kiplinger's Personal Finance.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة October 2023 من Kiplinger's Personal Finance.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
Your Vacation Home Could Provide Tax-free Income
If you plan to rent out your vacation home, it's important to understand how your proceeds will be taxed.
IT'S NOT YOUR IMAGINATION: YOUR CEREAL BOX IS SHRINKING
To avoid raising prices, some manufacturers are reducing the size of common grocery items. Here’s how to fight back.
SHOULD YOU WORRY ABOUT BEING LAID OFF? IT DEPENDS ON YOUR INDUSTRY
Downsizing has hit certain sectors. But cutbacks may be slowing, and some companies are expanding.
How identity thieves are exploiting your trust
Con artists themselves are disguising as well-known brands to steal your money and personal information.
CUT THE COST OF YOUR WIRELESS BILL
AT&T, T-Mobile and Verizon dominate the market, but smaller outfits offer similar network coverage at lower prices.
MAKING HOME ENERGY MORE AFFORDABLE
Households in need can get energy-efficiency upgrades, help with utility bills and more from this nonprofit.
A HEAD START FOR SAVERS
The Saver's Credit is designed to help low- and middleincome taxpayers contribute to a retirement account.
Say I Love You With a Money Date
To nurture a lasting bond with your partner, meet regularly to talk about money.
Plan for Your Own Elder Care
AFTER I wrote a series of columns in 2022 about elder care planning for family members, I received a number of responses like this one: “What about married couples who have no children or whose family members don’t live nearby?” wrote one reader. “Or a single individual with no close relatives? How should these people plan for their own elder care?”
OVERCOME RETIREMENT OBSTACLES
Most likely, you'll encounter setbacks on your journey. But with careful planning, you can surmount them.
