Last year, fallout from the pandemic drove inflation to a four-decade high, and the rising cost of rent, groceries, and monthly utilities put many people in a difficult financial position. More than half of Americans dipped into their savings accounts to cover everyday expenses, and some families even reported skipping meals to make ends meet.

Not surprisingly, financial headwinds left some retired workers in a particularly unpleasant spot. Trillions of dollars disappeared from retirement accounts as the stock market plummeted, and the buying power of Social Security benefits declined as prices increased across the economy. The only silver lining was the historic cost-of-living adjustment (COLA) applied to Social Security payments this year.

To offset inflation, Social Security benefits got an 8.7% COLA in 2023, the biggest raise for retired workers since 1982 and the fourth biggest raise in history. Can retired workers expect another big COLA in 2024?

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Source Fool.com