Now over a month into 2023, seniors have likely received their newly raised Social Security payments — but it’s never too early to start thinking about the 2024 COLA.

The Cost-of-Living Adjustment is a constant priority here at NORA. While the 8.7 percent increase seemed to show that momentum was on the side of America’s retirees, a new concern is appearing.

On the surface, things seem to be going well. Payments are up, and inflation is easing by some reports — however, could this actually be what puts next year’s adjustment at risk?

If Prices Level Out, Will Benefits Follow the Same Path?

Benefit adjustments are calculated based on a number of factors, including prices and inflation.

Some say these metrics need adjusting. Others say the current method resulted in higher COLAs than expected. The current state of rising prices has dulled 2023’s record adjustment — but what happens if inflation really is cooling?

Rates may be going down according to Fed balance sheets, yet the impact of higher prices is still there for America’s retirees. Expenses like groceries, as well as costs like gas are still high. If the technical measure of inflation shows a sharp fall from historic highs in recent years, some would say there’s no case for a new COLA.

Of course, this would be a drastic blow to the finances of America’s retirees. Not only that, it would be an injustice! As we’ve discussed, benefit adjustments are as much a moral issue as an economic one.

Help Us Pave the Way for the 2024 COLA

We believe it’s never too early to make the case for another record benefit adjustment. Do you share our passion for this important cause?

Let’s let Congress know that COLAs are needed and deserved for all seniors. Check out our petition here. Then follow us on Facebook and Twitter for more Social Security news.