Social security recipient? Here's how 2024's COLA will affect Coloradans
Financial professionals Roger and Jordan Reynolds are in the business of helping people manage their money. When it comes to social security benefits, they can be difficult to manage.
"We want to make sure we're doing everything we can to get the most out of social security," said Roger.
That includes being aware of the Social Security Administration's yearly cost-of-living adjustment, or COLA.
"Recently, the administration announced their cost-of-living adjustment for January of 2024. The number was 3.2%. That means your benefit will go up by 3.2%. But not everybody's happy about it," he said. "People are saying it's not going to keep up with inflation. We've had a rough year – interest rates are high mortgage rates are really high – but it is an improvement. Every little bit helps."
The average retirement benefit will increase by about $50 a month, beginning in January, according to the Social Security Administration.
Next year's COLA, while lower than the current year, is still above the historical norm for the annual adjustment, which has averaged 2.6% over the past two decades, according to the Senior Citizens League, an advocacy group for older Americans. However, seniors are reporting that they are struggling. That's why it's important to not let it be your only income.
"Social security is only designed to pay about 40% of our expenses. The rest is on our own shoulders, whether that's a pension, a 401k, investments," Roger recommends.
And if those aren't options, Jordan says try to maximize your social security payments. "It's about how you file. There are spousal benefits, survivor benefits, there's personal benefits. There is a strategy," he said.
To get help from Reynolds Group, visit their website: https://reynoldsfg.com
