2024 Social Security COLA estimate continues to shrink.

The annual cost-of-living adjustment (COLA) for Social Security beneficiaries in 2024 may be 2.7%, according to new estimates based on the latest consumer price index data. This is substantially lower than the record 8.7% COLA beneficiaries received this year due to record high inflation. The estimate is subject to change and could even point to a lower benefit increase for next year as inflation continues to subside. Despite inflation cooling, prices are still high, especially for categories like insurance and healthcare costs, which rarely decline. Some groups hope the measure for the annual COLA can be changed to the consumer price index for the elderly (CPI-E) to more accurately reflect the categories retirees spend their money on.