In 2023, cost-of-living adjustments (COLA) for retirement programs such as Social Security, the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS) all received the highest COLA in more than 40 years.
However, based on consumer price data released last week, the 2024 COLA is estimated to be approximately 3%, according to analysis from The Senior Citizens League (TSCL), a nonpartisan seniors group.
Results from a new survey by TSCL indicate that while the inflation rate in July was significantly lower than a year ago, most older Americans report that high prices still affect their household budgets.
TSCL released some of the responses to their survey from July 2023:
“How would you characterize your monthly budget for essential items (housing, food, and prescription drugs) over the past 12 months?”
“Have you ever postponed or gone without medical services or products due to cost?”
Over 66 percent of survey participants said they had postponed dental care, including major services such as bridges, dentures, and implants. Forty-three percent said they have delayed optical exams or getting prescription eyeglasses. Almost one-third of survey participants said they have postponed getting medical care or filling prescriptions due to deductibles, out-of-pocket costs, and unexpected bills.
The survey results also suggest more than one in five Social Security beneficiaries (23%) report they paid tax on a portion of their benefits for the first time this past tax season.
“The tax return for 2022 reflected a 5.9% COLA increase in Social Security benefits,” TSCL said. “We expect the number who pay tax on a portion of their Social Security benefits to jump even more as next year’s tax season reflects the 8.7% COLA increase in 2023.
