August CPI pushes 2024 COLA forecast up 3.2%

August CPI pushes 2024 COLA forecast up 3.2%
The resulting increase would raise the average monthly retiree benefit of $1,790 by $57.30.
SEP 13, 2023

The Social Security cost of living adjustment for 2024 will likely be 3.2% based on a jump in consumer price data through August, according to the Senior Citizens League. The resulting increase would raise the average monthly retiree benefit of $1,790 by $57.30. The Social Security Administration is slated to announce the COLA for 2024 in October. 

On a relative basis, a 3.2% COLA is far lower than the 8.7% received in 2023, the highest COLA in more than four decades. That said, it is still higher than the 2.6% average over the past 20 years.

Driven by a spike in energy prices, the consumer price index rose 0.6% in August, its biggest monthly gain of 2023 and up 3.7% from a year ago. Meanwhile, the core CPI increased 0.3% and 4.3% respectively, against estimates for 0.2% and 4.3%.

The law states that the annual inflation adjustment is based on the average inflation during July, August, and September as measured by the CPI for Urban Wage Earners and Clerical Workers. Inflation for these three months is added together and averaged, then compared with the third quarter average from one year ago. The percentage difference between the two is the amount of the COLA, which would be payable for the check received in January 2024.

Despite the record COLA in 2023, the Senior Citizens League points out that older households have reported very modest spending.

“In 2023 retirees received the highest COLA in 40 years at 8.7%, but nobody is getting rich,” said Mary Johnson, Social Security and Medicare policy analyst at the Senior Citizens League in a statement. “The reality is that the dollar amount of the COLA increase received is meager at best, with the average monthly retiree benefit only $1,790 in 2023.”

Latest News

Farther debuts AI investment proposal tool for advisors to win clients
Farther debuts AI investment proposal tool for advisors to win clients

"Im glad to see that from a regulatory perspective, we're going to get the ability to show we're responsible [...] we'll have a little bit more freedom to innovate," Farther co-founder Brad Genser told InvestmentNews.

Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler
Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler

Former advisor Isaiah Williams allegedly used the stolen funds from ex-Dolphins defensive safety Reshad Jones for numerous personal expenses, according to police and court records.

Are you optimally efficient?
Are you optimally efficient?

Taking a systematic approach to three key practice areas can help advisors gain confidence, get back time, and increase their opportunities.

Advisor moves: Father-son duo leaves Raymond James for LPL, RayJay adds Merrill Lynch alum in Florida
Advisor moves: Father-son duo leaves Raymond James for LPL, RayJay adds Merrill Lynch alum in Florida

Meanwhile, Osaic lures a high-net-worth advisor from Commonwealth in the Pacific Northwest.

Beacon Pointe adds six RIAs in two-month acquisition spree, boosting AUM by $2.7B
Beacon Pointe adds six RIAs in two-month acquisition spree, boosting AUM by $2.7B

The deals, which include its first stake in Ohio, push the national women-led firm up to $47 billion in assets.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.