Social Security Payment Delay: Millions of Social Security recipients may not see a payment boost for over a year due to delayed adjustments in the cost-of-living (COLA) formula.
COLA Adjustment Slowdown: The cost-of-living adjustment, which helps keep Social Security payments in line with inflation, may experience a lag as inflation levels stabilize.
Long Wait for Boost: Experts predict that some recipients may face a delay of up to 18 months before any meaningful increase in Social Security payments.
Factors Behind Delay: The slowdown is due to the combination of shifting inflation trends and the need for new data to properly assess future COLA raises.
Impact on Beneficiaries: Senior citizens and individuals relying heavily on Social Security may struggle with rising costs without an immediate increase in payments.
Federal Reserve’s Role: The Federal Reserve’s recent interest rate hikes aimed at controlling inflation are contributing to this lag in COLA adjustments.
Government Response: Officials are considering changes to expedite the formula adjustments, but no immediate solutions are in place.