Social Security enroll𝓀ees will get a little more in the𒐪ir benefits checks next year to contend with inflation.

The Social Security Administration adjusts benefits based on inflation each year to maintain enrollees' purchasing power. This year, the cost of living adjustment (COLA) will increase Social Security checks by 2.5%, and beneficiaries will receive $50 more on average each month, the administration announced Thursday.

How Is the Social Security COLA Calculated?

The COLA is determined using a formula outlined in the Social Security Act to help beneficiaries keep up with inflation.

The formula uses increases in the Consumer Price Index for Urban Wage Earner🧸s and Clerical Work𝕴ers (CPI-W) fr෴om the third quarter of one year to the third quarter of the next.&𓃲nbsp;

This means the adjustment for next year is based on the changes in inflation rates during July, August, and September of 2024 compared to the same three months of 2023.

When Will I Star🌌t Receiving Increased Social Security Payments?

Although the COLA calculation was announced Thursday, benefits will no🍬t change until the new year. Over 68 million Social Security enrollees will get their first adjusted check in January.

How Does It Compare To Previous Years' COLA Adjustments?

Last year, beneficiaries received a 3.2% increase in ဣbenefits, as inflation had slowꦐed.

Enrollee🀅s got a hefty boost in payments in 2022 and 2023 as inflation soared. Now that price pressures have cooled, adjustments have started to stabilize.

Is It Enough To Keep Up With Inflation?

Some advocates say the increases are not enough to maintain Social Security enrollees' purchasing power

The Cost-of-Living Adjustments have been criticized for lagging current economic situations since they are calculated based on the third quarter of the prior year. Critics also say that the third quarter doesn't capture the full economic experience of Social Security beneficiaries throughout the year.

The Senior Citizens League estimates that the v澳洲幸运5官方开奖结果体彩网:alue of Social Security benefits has de🤡clined by 20% over the last 14 years.