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Your Social Security COLA increase could be bigger than expected next year

Social Security recipients are expected to receive a larger-than-previously expected cost-of-living adjustment (COLA) next year after inflation accelerated for three consecutive months.

The Senior Citizens League, a nonpartisan group focused on issues related to older Americans, estimates that the adjustment could be approximately 3%, based on the following information: . March inflation dataAccording to this, the consumer price index increased by 0.4% from the previous month, and by 3.5% compared to the same period last year.

Both numbers were higher than expected, highlighting the challenge of containing high inflation.

Annual social security changes are calculated based on the Consumer Price Index for Urban Salaried and Office Workers (CPI-W) for July, August, and September. The CPI-W in March also increased by 3.5%.

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A 3% increase in monthly check amounts for Social Security recipients next year would mean recipients’ monthly check amounts would be significantly lower than in 2023. 8.7% bump Starting in 2024, benefits increased by 3.2%.

In this photo illustration, a Social Security card is placed next to a check from the U.S. Treasury on October 14, 2021 in Washington, DC. (Kevin Dietsch/Getty Images/Getty Images)

However, it is still higher than the average 2.6% increase recorded over the past 20 years.

With such an increase, the average retiree benefit would be $1,907, an increase of about $57.21 per month.

Mary Johnson, research analyst for the Seniors Federation, who conducted the analysis, said that despite the cost of living rising last year, many retirees are struggling to keep up with high inflation.

This year’s benefit increase rate was 3.2%, higher than the actual inflation rate in March and in line with February’s inflation rate.

Why are groceries still so expensive?

“This means older consumers are losing purchasing power,” Johnson said.

of Social Security Administration The final adjustment rate will be announced in mid-October.

US grocery shoppers

Shoppers are seen at a Kroger supermarket on October 14, 2022 in Atlanta, Georgia. ((Photo by: Elijah Nouvelage/AFP) (Photo by: ELIJAH NOUVELAGE/AFP via Getty Images) / Getty Images)

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Inflation is putting severe economic pressure on most American households, forcing them to pay for everyday necessities like food and rent. The burden falls disproportionately on low-income Americans, whose paychecks are already tight and are highly exposed to price fluctuations.

The typical U.S. household had to pay $227 more per month in March to buy the same goods and services as they did a year ago. Inflation remains highAccording to calculations shared with FOX Business by Mark Zandi, chief economist at Moody’s Analytics.

Americans are paying That’s an average increase of $784 per month compared to the same period two years ago, and $1,069 more than three years ago, before the onset of the inflation crisis.

The analysis shows that while inflation has fallen from its peak in mid-2022, many households have yet to experience any real relief.

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