Social Security News: Why the Boost for Senior Citizen’s Will Shrink in 2024
Written by
Kellan Jansen
Edited by
Melanie Grafil
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More than 70 million people rely on Social Security checks to cover their bills. Many live from paycheck to paycheck, but even those who don’t still have to plan their annual budgets around their payment allocations.
This is why the Social Security boost is such a prominent topic at the start of each new year. Unfortunately, the latest Social Security news shows that senior citizens will be getting a smaller bump than they may be used to in 2024.
Keep reading to learn how much of an increase you can expect from your Social Security payments this year and why it may be less than you thought.
Learn More: 3 Ways To Recession-Proof Your Retirement
What Is the Social Security Boost?
The Social Security “boost” is another name for the Social Security Administration’s cost-of-living adjustment policy. Each year, the SSA increases its payments to all Social Security recipients to account for inflation, which increases the cost of living.
For example, in 2023, about 70 million Americans receiving Social Security benefits saw an 8.7% increase in payments due to cost-of-living adjustments. This was a particularly large increase that reflected 2022’s high inflation rate.
What’s the Social Security Boost for 2024?
The cost-of-living adjustment for 2024 is 3.2%. This is significantly lower than last year’s inflation-fueled boost, which had to account for inflation levels that had not been seen since the early 1980s.
Still, this year’s Social Security boost is above the historic average. Experts say senior citizens had received an average cost-of-living increase of 2.6% over the previous two decades.
This comes amid growing concerns about the future of Social Security benefits, which may need to be slashed by as much as 20% within the next decade, according to some analysts.
Why Social Security Feels Like It Covers Less Now
Despite the Social Security Administration’s commitment to annual cost-of-living payment increases, many Americans feel like their checks cover fewer expenses than they used to. It turns out that there’s a reason for that sentiment.
According to a recent report by the Senior Citizens League, Social Security benefits have lost 36% of their buying power since 2000. This means you’re not imagining it if you feel like your check covers less and less over time.
The reason for this, according to the report, is that the SSA’s annual cost-of-living adjustments have not kept pace with rising costs Put another way, the SSA’s boosts have been about 36% lower than inflation since 2000.
What To Do If You’re Struggling
If you were hoping for a larger Social Security boost in 2024, you may be wondering how to make up the difference. The good news is that there are a variety of financial support programs for senior citizens to take advantage of. These can help with groceries, rental costs, health care and more.
Here are a few of these programs you may be able to take advantage of if you’re struggling financially.
Supplemental Nutrition Assistance Program
The Supplemental Nutrition Assistance Program is the name for the federal government’s food stamp program. It’s designed to help low-income Americans pay for groceries. The amount of support you can get through SNAP will depend on your household size and household net income, among other factors.
Reverse Mortgage Program
The federal government also has a reverse mortgage program for Americans who are 62 and older. This program provides a guaranteed monthly payment to older Americans who have built up equity in their homes.
The main advantage of the program is that the homeowner doesn’t have to repay any of the money they borrow for as long as they live in the house. However, you (or your heirs) will still need to pay the money back eventually.
Section 8 Housing Vouchers
If you’re struggling with rent payments instead of a mortgage, then you may qualify for Section 8 housing vouchers. If you’re eligible, you can get a voucher that covers a portion of your rent from any landlord who participates in the program.
However, you should know that there’s often a waiting list for housing vouchers due to inadequate funding for the program. This means that if you’re at all interested in Section 8, you should apply as early as you can.
Home Energy Assistance Program
Energy bills can be expensive in many parts of the country. If you’re struggling with yours, then consider applying for your state’s Home Energy Assistance Program. HEAP is federally funded but administered by the states. It may help you cover a portion of your home’s heating expenses.
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