Broker Check

A Smaller Social Security Bump May Be On the Way

May 01, 2023

I wanted to take a moment to update you on the potential changes to Social Security benefits for 2024. As I'm sure you know, the Social Security Administration calculates annual cost-of-living adjustments (COLA) based on the Consumer Price Index (CPI) and inflation. However, recent projections show that as inflation starts to subside, the COLA for 2024 may be less than 3%.1

That's a drastic drop compared to the past two years. Social Security beneficiaries saw a 5.9% bump in 2021 and a record-setting 8.7% increase in 2022.2

This projection is very much an early assessment. Gauging the increase for 2024 will be clearer toward the second half of the year, but I wanted to make sure you were aware of this potential change. Remember that even with a possibly smaller COLA this year, cooling inflation may also help create an even stronger economic environment overall.

As always, I'm here to answer any questions about Social Security benefits, your portfolio, or anything else you want to discuss further.

1., April 12, 2023
2., 2023

This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.

Copyright 2023 FMG Suite.