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Report
Retirees set for historic COLA increase
The Street
Follow
8/12/2024
COLA rates could see a three-decade run come to an end, and that’s good news for retirees.
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Sports
Transcript
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00:00
I'm Conway Gittins reporting from the New York Stock Exchange.
00:02
Here's what we're watching on the street today.
00:04
Wall Street begins a new week with a focus on economic data.
00:08
Investors are keen to see if readings on consumer and producer
00:12
prices nudge the Federal Reserve towards a quarter percentage point
00:16
rate cut or a half percentage point rate cut in September.
00:19
July retail sales will also be a key indicator
00:22
on the health of the consumer and the economy overall.
00:27
Good news is expected for America's retirees.
00:30
2025 is likely to bring a Social Security Cost of Living
00:34
Adjustment, or COLA, increase that hasn't
00:37
been seen in over three decades.
00:40
The government won't release official numbers until October.
00:43
But based on 2024's inflation data, experts
00:46
predict Social Security recipients could
00:48
get a raise of between 2.7% to 3.2%.
00:52
A raise that big would mean four straight years of raises
00:56
at or above 2.7%.
00:58
That hasn't happened in 32 years.
01:02
In order to determine the size of the adjustment,
01:04
the Department of Health and Human Services
01:06
relies on third quarter data from the Consumer Price
01:10
Index for urban wage earners and clerical workers.
01:13
In June, that rate was 2.9% higher than a year ago,
01:18
and experts only expect it to tick down a little in coming months.
01:22
The Senior Citizens League says any raise
01:25
will likely be gobbled up by food prices that are still
01:28
higher than they were before 2020.
01:30
One dozen eggs cost 80% more, lettuce is 72% more expensive,
01:36
and a pound of sugar is up by 45%.
01:39
Price jumps like those have led to rising food insecurity
01:42
for retirees, according to the group.
01:45
A recent survey of retirees showed one third of respondents
01:49
said they either visited a food pantry
01:52
or applied for food stamps over the past year.
01:55
That'll do it for your daily briefing from the New York Stock Exchange.
01:58
I'm Conway Gittens with The Street.
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