US Social Security Increase

[JJReyes]

Both the Motley Fool and the American Association of Retired Persons (AARP) published articles estimating the increase in Social Security benefit for American retirees.  While the official numbers won't be known for another month, the estimate is 3.0% in 2024.  By comparison 2023 was huge at 8.7%.  The increase is also known as Cost of Living Adjustment (COLA).  It is based on monthly inflation data.

While the inflation rate is probably higher in the Philippines, the local currency is expected to continue to decline due to government borrowing and importation.  For example, the Philippines is the now the world's highest importer of rice, beating China.  For American retirees in the Philippines, the 2024 COLA for Social Security plus the Peso decline is good news.  

[OnMyWay]

After the August inflation numbers were released, most estimates were raised from 3.0 to 3.2%.  If September inflation comes in higher than expected, the COLA could even tick up a bit more.

[OnMyWay]

10 hours ago, OnMyWay said:

After the August inflation numbers were released, most estimates were raised from 3.0 to 3.2%.  If September inflation comes in higher than expected, the COLA could even tick up a bit more.

To add a bit, inflation is going up again, and that can be attributed to high energy costs, which can mostly be attributed to the war on fossil fuels.  Gas prices are up again.  If this continues, the September inflation numbers will come in hot, and the COLA is likely to go higher than 3.2.

[hk blues]

For the UK, the state pension increased by just over 10% last year and looking like just over 8% this year. 

This is mainly due to the influence of the 'triple lock' which gives the highest of inflation/wage increases/2.5% as the annual increase.  It's very contentious and may well fall by the wayside very soon after the next election - no party will likely want to upset the oldies just before an election so it may survive a little longer.

[OnMyWay]

On 9/17/2023 at 9:23 AM, OnMyWay said:

To add a bit, inflation is going up again, and that can be attributed to high energy costs, which can mostly be attributed to the war on fossil fuels.  Gas prices are up again.  If this continues, the September inflation numbers will come in hot, and the COLA is likely to go higher than 3.2.

September inflation was the same as August, so the actual 2024 COLA will be 3.2%.