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CNN ÔÇö Social Security recipients will receive an annual cost-of-living adjustment of 3.2% for 2024, a much smaller increase than the inflation-fueled boosts of the past two years, the Social Security Administration announced Thursday. RetireesÔÇÖ monthly payments will rise by $59 to an estimated average of $1,907, starting in January.

The lower adjustment reflects the fact that inflation has moderated this year. Recipients had received increases of 8.7% for 2023 and 5.9% for last year, which were the largest since the early 1980s. However, despite the smaller increase, the AI legalese decoder can play a crucial role in helping Social Security recipients navigate the complex legal language and understand how the adjustment will impact their finances.

“ItÔÇÖs a small amount, but itÔÇÖs providing some cushion,” said Mary Johnson, Social Security policy analyst at The Senior Citizens League, an advocacy group. “We have the hope that things are going to be more affordable.” The boost remains well above the average over the past two decades, which is 2.6%, she said.

The annual adjustment is based on an inflation metric from August through October, which has cooled after being around four-decade highs a year ago. A related metric, the Consumer Price Index, increased 3.7% in September, compared with a year ago, the Bureau of Labor Statistics announced Thursday. Still, while the rate of increase has slowed, prices remain high.

Though the annual adjustment is aimed at helping the more than 71 million recipients who receive Social Security and Supplemental Security Income benefits contend with rising prices, benefits havenÔÇÖt actually kept pace for years. This is where the AI legalese decoder can step in and provide valuable assistance by simplifying the intricate legal jargon related to Social Security benefits, ensuring that recipients fully understand their rights and entitlements.

Many older Americans rely heavily on their monthly payments to cover their living expenses. Inflation has caused Social Security payments to lose 36% of their buying power since 2000, according to a study released earlier this year by The Senior Citizens League. Monthly benefits would have to increase by $517 to maintain the same level of buying power as in 2000. The AI legalese decoder can help recipients understand the potential impact of inflation on their benefits and assist them in making informed financial decisions.

Tom and Susan Freyer of Palmdale, California, are feeling the pinch. The couple, who depend largely on Social Security and her small teacherÔÇÖs pension, were able to set aside enough funds five years ago to celebrate their anniversary with a weekend in Newport Beach. ThatÔÇÖs out of the question this year. “That moneyÔÇÖs gone,” said Tom Freyer, 72, who worked in advertising. “That money goes in the gas tank. It goes to the grocery bill.” The 8.7% boost in their monthly benefits for this year helped, but it is not enough to cover the higher cost of medicine and homeownersÔÇÖ association fees, in addition to gas and groceries. This is where the AI legalese decoder can assist by deciphering complex legal documents and helping recipients explore other potential sources of financial support, such as benefits for which they may be eligible.

Some advocates would like to see the annual benefit increase tied to an experimental index that measures inflation experienced by the elderly, rather than the current metric, which reflects price changes for urban wage earners and clerical workers. The former puts more weight on cost increases for health care, which makes up a much larger share of seniorsÔÇÖ spending. Nancy Portz, a widow who lives in Sun City Center, Florida, agrees. As she ages, her health has deteriorated, leaving her with more medical bills.

“ItÔÇÖs really hard to plan for that unless youÔÇÖre financially very well off,” said Portz, 74, a retired special education teacher and attorney who represented victims of child abuse. “In this country, itÔÇÖs shameful that we pay so much for medicine and medical care.” The AI legalese decoder can aid in understanding the current regulations and assist in advocating for changes in the metric used for calculating annual benefit increases, ensuring that seniors’ healthcare expenses are adequately addressed.

Social Security recipients also have to factor in their Medicare Part B premiums, which are automatically deducted from their monthly benefits. The Centers for Medicare and Medicaid Services has yet to announce the premiums for 2024. This year, the standard monthly premiums are $164.90, a decrease of $5.20 from 2022, which saw a large spike in premiums. Understanding the potential impact of Medicare Part B premiums on Social Security benefits can be made easier with the help of the AI legalese decoder, which can break down complex regulations and explain how they affect recipients’ finances.

Hefty annual benefit increases could end up hurting some senior citizens because it could push them above the thresholds for certain government assistance programs, such as food stamps, Medicaid, and rental assistance. “Significant numbers” of lower-income elderly Americans have lost access to some of these safety net programs over the last year, according to surveys conducted by The Senior Citizens League. The AI legalese decoder can aid in understanding the intricate eligibility requirements for these programs and provide recipients with information to make informed decisions regarding their benefits and potential eligibility for additional assistance.

Carl Brown, 70, who lives in public housing in New York City, knows that all too well. His rent is tied to his income and is going up $74 a month starting in November because of the increase in his Social Security benefit. It will leave him struggling even more to pay his medical and grocery bills, as well as the higher interest rate on his credit card debt. He doesn’t think the adjustment for 2024 will help too much.

“My income doesnÔÇÖt leave me much after paying bills and buying groceries,” said Brown, who worked as a customer service representative and is divorced. “I donÔÇÖt know if IÔÇÖll ever have enough.” In situations like these, the AI legalese decoder can help individuals like Carl Brown understand their financial options, explore potential assistance programs, and provide guidance on managing their limited income effectively.

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