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Lower COLA for 2024. Why?

Seniors on Social Security look forward to and depend on getting a little boost each January. It’s called the cost of living adjustment (COLA). It’s not a raise, as the boost just allows one to keep pace with prices that have already risen. Third quarter inflation data are used each year in calculating COLA using what is known as the CPI-W index (explained in the article here). COLA announcements are made mid October. Maurie Backman’s piece here suggests expectations be tempered because in May, the CPI-W increased just 3.6% on an annual basis. If the index keeps dipping, Social Security recipients could end up with a pretty small boost in 2024, which the Senior Citizens League suggests might be just 2.7%. Full article here.

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