Social Security Payments: 2024 Checks Set for a Slight Increase to $1,907 Average

There is some good news and some bad news for the security checks in 2024. The good news is that social security payments will increase. However, the bad news is the increase would not be as big as the ones sent previously.

According to CNN, Social Security recipients will receive an annual cost-of-living adjustment of 3.2% for 2024. While it is an increase, it would be much smaller than the increases from the last two years. However, those increases were fueled by inflation. Now that inflation has slowed down, the increase for next year is not that big.

Monthly payments for retirees are expected to increase by around $59 to an estimated average of $1,907 next year. This is expected to begin in January's Social Security payments.

The lower increase reflects how much inflation has been moderated this year. For the last two Social Security payments, there was an 8.7% increase in 2023 and a 5.9% increase in 2022. These were the largest increases in Social Security payments since the early 1980s.

"It's a small amount, but it's providing some cushion," Social Security policy analyst at The Senior Citizens League, Mary Johnson, told CNN. "We have the hope that things are going to be more affordable."

However, while the increase is small compared to the previous two increases, it is still larger than the average increase during the last two decades, which was only around 2.6%. The small increase also came with a recent increase in the Consumer Price Index last September, which was around 3.7%.

Medicare Premiums Will Also Factor Into Social Security Check Increase

There is another factor that resulted in a smaller increase in Social Security payments, and that is the impact of annual Medicare premiums on Social Security benefits. The reason for this is that the health program's Part B costs are automatically deducted from monthly Social Security benefits before they are sent out.

According to CBS News, the Medicare forecast last March for Plan B premiums is expected to increase by 6%, with the price going up to $174.80. This means the increase is around $10. This means that Social Security recipients would be getting a subtraction of around $50 due to the benefit's increase.

For retirees, however, experts are saying that this would be a good thing as health care costs are a huge part of retirees' costs.

Retirees Still Hit Hard by Inflation Despite Increases in Social Security Checks

Despite the increase, however, retirees are still feeling the sting as many are still struggling thanks to the higher prices brought about by inflation. This has been acknowledged by the AARP.

"Retirees can rest a little easier at night knowing they will soon receive an increase in their Social Security checks to help them keep up with rising prices," said Jo Ann Jenkins, AARP Chief Executive. "We know older Americans are still feeling the sting when they buy groceries and gas, making every dollar important."

CNBC noted that she also called on Congress for bipartisan action to keep Social Security strong as the program is facing funding shortages within the next decade.

This article is owned by Latin Post.

Written by: Rick Martin

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