How gas prices are tied to the COLA
Each year, the COLA is calculated based on a subset of the Consumer Price Index (CPI) called the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-W tracks the cost of many common expenses, such as food, housing and transportation.
The formula specifically looks at the average third-quarter (July, August and September) CPI-W figures. The Bureau of Labor Statistics released its July CPI report on Aug. 10, showing the CPI-W increased 2.6% over the previous 12 months.
If gas prices spike at any time in August and September, it could increase the final COLA figure.
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Seniors already expecting decreased COLA
The Senior Citizens League (TSCL) estimates that the 2024 COLA will be far lower than the previous year.
The 2023 COLA was 8.7% thanks to high inflation. But with inflation now cooling, TSCL estimates a 3% COLA for 2024. This would increase Social Security beneficiaries’ average monthly benefit by $53.50, from $1,787 to $1,840.
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Meet Your Retirement Goals Effortlessly
The road to retirement may seem long, but with WiserAdvisor, you can find a trusted partner to guide you every step of the way
WiserAdvisor matches you with vetted financial advisors that offer personalized advice to help you to make the right choices, invest wisely, and secure the retirement you've always dreamed of. Start planning early, and get your retirement mapped out today.
