2024's Disappointing Social Security COLA Is Hurting Retirees: 5 Alternative Ways to Approach Retirement Savings
Social Security is vital to millions of Americans. Consider that "the bottom 40% of lifetime earners will receive over 80% of their retirement income through the program," per the Peter G. Peterson Foundation. "Without Social Security benefits, a staggering 38% of older adults would have incomes below the poverty line," according to Kathleen Romig, director of Social Security and disability policy at the Center on Budget and Policy Priorities.
Yet, the more you learn about Social Security, the more disappointed you might feel. For one thing, the average monthly retirement benefit isn't huge. As of May, it was only $1,917, which comes out to about $23,000 per year. The annual cost of living adjustment (COLA) often disappoints, too. For 2024, it was just 3.2%. And according to the latest estimate from the nonpartisan Senior Citizens League, the upcoming COLA for 2025 may be less than 2.6%. That's likely to take a toll on the budgets of millions of people whose expenses rise by more.
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Source Fool.com
