Nearly three in five seniors collecting Social Security benefits are experiencing financial hardship. (iStock)
Inflation and rising prices are taking a toll on the growth of retirement savings, and many Americans who rely on Social Security benefits are struggling to make ends meet.
As of January 2024, the average Social Security retirement benefit for all retired workers was $1,907, according to . gobankingrates.com. To earn more than that average, you need to work longer and collect benefits by full retirement age.
Nearly three in five seniors receiving Social Security are experiencing financial hardship, and 62% say the 3.2% cost-of-living adjustment (COLA) in 2024 will not cover their expenses and support their lifestyle. was insufficient, said a recent Atticus paper. investigation Said. The beneficiary will receive an additional benefit of $59 per month starting in January of this year based on her 3.2% COLA for 2024. The adjustment amount was lower than in previous years due to moderate inflation. Recipients will receive an 8.7% increase in 2023 and a 5.9% increase in 2022, the most since the early 1980s due to record high inflation.
According to gobankingrates.com, the five states receiving the most Social Security benefits as of February 2024 are:
- California: $10.4 billion
- Florida: $8.5 billion
- Texas: $7.5 billion
- New York: $6.44 billion
- Pennsylvania: $5.1 billion
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These states do not tax your benefits
Increase in the number of social security recipients You may pay tax on your benefits For the first time this tax season, according to the Senior Citizens Alliance (TSCL).
In fact, 23% of survey participants who have received Social Security for three years or more said they paid their first tax in the 2023 tax season. In 2023, he will see an 8.7% increase in his COLA, so this percentage is likely to increase this tax season.
If your income exceeds $25,000, your Social Security benefits are taxed. This fixed threshold has not been adjusted for inflation since the tax went into effect in 1984. Up to 85% of your Social Security benefits are taxable once your income exceeds a certain threshold.
However, according to recent AARP, Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming have no income tax. This means that Social Security retirement benefits are not taxed at the state level. report.
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Elderly people face high medical costs
The standard monthly cost of Medicare Part B, which most seniors and people with disabilities need to cover certain physician services, outpatient care, medical supplies, and preventive services, increased by $9.80, or 6%, to $174.70. I did. By the Centers for Medicare and Medicaid Services (CMS).
The annual deductible for Medicare Part B beneficiaries increased by $14 this year to $240. The Medicare Part A hospitalization deductible that beneficiaries pay if they are hospitalized is $1,632, an increase of $32 from $1,600 in 2023.
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