What is the 2024 Social Security Cost of Living Adjustment (COLA)?

In this week's episode, we dive into a crucial aspect of financial planning - the Social Security Cost of Living Adjustment for 2024. Join us as we break down the calculation process and shed light on the factors influencing this adjustment.

Learn why the erosion of purchasing power is a significant risk in any financial plan. Understand the background leading to the heightened relevance of Social Security cost of living adjustments, especially in the aftermath of the 2020 pandemic.

We provide a detailed explanation of how the adjustment is calculated, focusing on the Consumer Price Index for urban and clerical workers (CPI-W) and its components. Discover the Social Security Administration's announcement of a 3.2% increase in benefits for 2024, with insights into the thought process behind this adjustment.

We also explore the challenges faced by the Social Security cost of living adjustment, including its focus on specific indices and potential implications for retirees. We hope that this video is a helpful tool for understanding Social Security better!

Want to try your hand at fixing the Social Security trust fund? Check out the Social Security Reform Calculator

This content was written by Spencer S. Hall CFP®, RLP ®, CKA ®, MBA, MDiv

Spencer is a Certified Financial Planner™ with 14 years in the field of retirement and financial planning. As a second-generation financial advisor at Retirement Planning Services, Spencer brings a wealth of experience and passion to help clients align their wealth with their core values.

Advisory services offered through Retirement Planning Services, LLC.

The information in this article is intended for general educational and informational purposes only, and should not be construed as investment advisory, financial planning, legal, tax, or other professional advice based on your specific situation. Please consult with your professional advisor(s) before taking any action based on its contents.