Seniors Express Dissatisfaction with the 2024 Social Security Payment Increase: Based on a recent survey, senior citizens expressed that the modest increase in Social Security benefits for this year due to the cost of living will not be sufficient to offset the lasting financial effects of high inflation.
According to the Atticus survey, nearly three in five seniors receiving Social Security are experiencing financial hardship, and 62% believe the 3.2% cost-of-living adjustment (COLA) for 2024 is inadequate to cover their expenses and maintain their standard of living. Approximately 40% of those surveyed stated that the modest COLA increase would motivate them to seek employment; 47% of solitary seniors were contemplating employment as a means to supplement their income.
More than 71 million seniors receiving Social Security benefits will receive a 3.2% COLA increase in January, or an additional $59 per month on average. On December 29, 2023, increased disbursements to approximately 7.5 million SSI recipients will commence. The adjustment is diminished in comparison to prior years due to the moderation of inflation. As a result of record-high inflation, recipients received increases of 8.7% for 2023 and 5.9% for 2022, the largest increases since the early 1980s.
“The 2024 COLA increase has illuminated significant financial stress among seniors collecting Social Security, highlighting the widening gap between Social Security benefits and the rising cost of living,” according to the report by Atticus. These statistics and anecdotal reports show that there is an urgent need for more comprehensive initiatives to help the elderly, particularly those who are single or considering returning to the workforce. Amidst the current economic challenges faced by the elderly, ensuring their financial security necessitates a thorough reassessment of the strategies employed to assist this demographic.
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Social Security update: First round of January Payments worth $4,873 to be disbursed in 10 days
Taxes and Medicare costs deplete COLA.
The Senior Citizens League (TSCL) found that as many as 26% of survey respondents who have received Social Security for more than three years reported paying taxes on a portion of their benefits for the first time during the 2023 tax season. In 2024, an even greater proportion will presumably owe taxes on their benefits due to a substantial COLA increase in 2023.
“Up to 85% of Social Security benefits can be taxable when income exceeds certain thresholds,” according to TSCL. “In contrast to other provisions of the federal income tax code, there has been no inflation adjustment made to the income thresholds that determine eligibility for Social Security benefits.” Consequently, an increase in Social Security income resulting from COLAs may cause a greater number of retirees to surpass the thresholds at which the tax on their Social Security benefits is triggered.
The standard monthly cost of Medicare Part B, which covers outpatient care, preventive services, and specific physician services for the majority of seniors and disabled individuals, will increase by $9.80, or 6%, to $174.70, according to the Centers for Medicare and Medicaid Services. Beneficiaries of Medicare Part B will incur a $14 annual deductible increase to $240 in 2024. Beneficiaries of Medicare Part A who are admitted to a hospital will be required to pay a deductible of $1,632 in 2024, a $32 increase from 2023.
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Non-retirees are more optimistic regarding the prospects of Social Security.
A recent Gallup survey reveals that an increasing proportion of employed Americans anticipate being eligible for Social Security upon reaching the age of retirement.
According to the survey, 47% of respondents do not anticipate receiving a benefit from the Social Security system upon retirement, while half of the respondents do. The propensity of non-retirees to anticipate not receiving Social Security retirement benefits was greater in three prior measurements from 2005 and 2015. In addition, an increase from 37% in 2010 and 49% in 2015 to 53% of present-day U.S. retirees is confidence that they will continue to receive their full Social Security benefits.
Despite the progress, the annual trustees’ report recently published by the Treasury indicates that Social Security benefits could be reduced by 20% by 2034 if no modifications are implemented. The system is anticipated to have the capacity to remit 80% of benefits to recipients by 2034.
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Social Security update: First round of January Payments worth $4,873 to be disbursed in 10 days
