The numbers are in. The Federal government has announced the Social Security cost of living adjustment for 2024, and the increase will be 3.2 percent. You may be thinking, “How can this be? I am paying more for groceries, gas, and other necessities.”
Offsetting the total impact of inflation is not the goal of the Social Security Administration. Annual COLA adjustments are determined by using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) in the third quarter of each year. This excludes other real costs many seniors face, such as rent and health care. In fact, Social Security recipients who have Medicare Part B and Part D premiums deducted from their monthly benefit check will see a lower overall increase in their monthly check.
In October, the Centers for Medicare & Medicaid Services (CMS) released the 2024 premiums, deductibles, and coinsurance amounts for Medicare Part A and Part B programs. Medicare Part B premiums will increase 5.6% to $174.70 monthly – assuming you are not subject to the income-related monthly adjusted amount (IRMAA). This is up from $164.90 in 2023.
You can expect a notice from the Social Security Administration in December, either by mail or through your online account, outlining your monthly benefit beginning in January.
If you have questions about how inflation is impacting your retirement plan, please reach out to the Smedley Financial Wealth Management Team at 801-355-8888.
In this season of gratitude, thank you for your friendship and for allowing all of us at Smedley Financial to be part of your financial team.
