Social Security benefits got their biggest cost-of-living adjustment in decades this year, but retired workers will probably get a much smaller raise in 2024.
The fiercest inflation in four decades tore through the U.S. economy in 2022, and the rising cost of gas, groceries, and monthly utilities put many Americans in a difficult financial position. But retired workers on Social Security were hit especially hard, because the 5.9% cost-of-living adjustment (COLA) applied to benefits last year failed to offset inflation. In other words, Social Security beneficiaries lost buying power in 2022.
Fortunately, the system is designed to course correct, and it did just that. Social Security benefits got a historic 8.7% COLA in 2023, the largest raise for retired workers in more than 40 years. That additional income has undoubtedly been a lifeline, and it could very well restore any buying power that benefits lost last year, but it also comes with a bit of bad news.
Unfortunately, after receiving two unusually large COLAs in back-to-back years, Social Security beneficiaries will likely get a much smaller raise next year. READ MORE
