As Social Security races toward insolvency, retirees are getting their biggest COLA boost in 4 years
Source: Fortune ·
The AARP's Rich Johnson said family budgets "have been under increasing pressure because of rising prices."
From the source
Social Security recipients will get a 3.6% raise in January , the largest in four years. Inflation drove it, and the retirement trust fund that pays the checks is projected to run short in late 2032. The cost-of-living-adjustment (COLA) will reach about 72 million people and add an average of roughly $75 a month for retirees. The raise is up from 2.8% this year and is the largest since the 8.7% adjustment announced in 2022. It is 0.9 percentage points above what the Social Security trustees recently projected, according to the nonpartisan watchdog, the Committee for a Responsible Federal Budget. The COLA tracks the Consumer Price Index for Urban Wage Earners and Clerical Workers, so a bigger raise means prices rose faster. In AARP’s COLA preview, vice president for financial security at the AARP Public Policy Institute Rich Johnson said many older adults rely on Social Security for most of their income. He said family budgets “have been under increasing pressure because of rising…