Survey Reveals Dissatisfaction with Modest Cost-of-Living Bump
A new survey published by Atticus has shed light on the financial struggles faced by retirees as they grapple with the impact of inflation on their purchasing power. The survey found that a staggering 62% of seniors collecting Social Security expressed dissatisfaction with the meager 3.2% payment increase they will receive in 2024. With everyday necessities such as food, rent, and medical care remaining uncomfortably high, nearly three in five seniors reported financial difficulties. In fact, 20% of Social Security recipients plan to seek employment next year due to the inadequate increase.
Payment Boost Falls Short of Previous Years
Starting in January, over 66 million Americans collecting Social Security will see larger payments. However, this increase pales in comparison to the previous year, when recipients enjoyed an 8.7% bump, the highest in four decades. While the 3.2% boost is higher than the average increase of 2.6% recorded over the past two decades, retirees are concerned about their ability to keep up with the stubbornly high inflation.
High Inflation Continues to Worry Retirees
Despite a decline in the consumer price index from its peak of 9.1%, inflation remains above the Federal Reserve’s target of 2%. Prices have skyrocketed by a staggering 17.23% since January 2021, exacerbating retirees’ concerns. A separate survey conducted by the Senior Citizens League revealed that 68% of retirees reported higher household expenses compared to a year ago, even with the easing of inflation. Many retirees fear that their retirement income will not be sufficient to cover essential costs in the coming months.
“Worry that retirement income won’t be enough to cover the cost of essentials in the coming months is a top concern of 56% of survey respondents,” said Mary Johnson, Social Security and Medicare policy analyst at the Senior Citizens League.
The annual adjustment in Social Security payments is calculated based on the consumer price index for Urban Wage Earners and Clerical Workers (CPI-W) from July, August, and September.