2024 COLA: Impact and Outlook Among Beneficiaries

As the 2024 cost-of-living adjustment (COLA) of 3.2% takes effect, millions of Americans receiving Social Security benefits face a significant decrease from 2023’s 8.7% COLA and new financial realities.

We surveyed 650 Americans receiving Social Security disability benefits about their awareness of and reactions to these COLA changes, as well as how they might be impacted. 2024’s small COLA increase, coupled with projections for 2025, has sparked concerns about financial stability among disability beneficiaries. Join us as we uncover the perspectives and strategies of those most affected by these changes.

Key takeaways

• Over 70% of Social Security disability beneficiaries think the 2024 COLA was too low.

• 40% of recipients experienced negative financial impacts due to the 2024 COLA, and nearly 60% have had to decrease their spending.

• 3 in 5 disability benefit recipients are concerned about their future financial stability after learning about the 2025 COLA projections.

• Nearly 60% of recipients are considering obtaining an additional income source to offset the impact of the projected 2025 COLA.

• Over 80% of Social Security disability recipients are concerned about how the outcome of the presidential election will affect future benefits.

• 3 in 4 Social Security disability beneficiaries will vote for a candidate based on how their policies might affect their benefits.

Consequences for Social Security disability beneficiaries

• Nearly 70% of Social Security disability beneficiaries were unaware of the 2024 COLA before it was implemented.

• Over 70% of beneficiaries think the 2024 COLA was too low.

• 40% of recipients experienced negative financial impacts due to the 2024 COLA.

Nearly 60% of Social Security disability beneficiaries have decreased their spending habits following the 2024 COLA. Their most common budgetary adjustments were:

• Reducing dining out/entertainment (39%)

• Seeking additional income sources (33%)

• Delaying major purchases (30%)

2025 COLA projections

• 4 in 5 Social Security disability beneficiaries are unaware of the 2.5% 2025 COLA projection by the Congressional Budget Office (CBO).

• 3 in 5 beneficiaries are concerned about their future financial stability after learning about the 2025 COLA projections.

• Nearly 60% of beneficiaries are considering obtaining an additional income source to offset the impact of the projected 2025 COLA adjustment.

• Over 80% of Social Security disability beneficiaries are concerned about how the outcome of the presidential election will affect future benefits.

• 3 in 4 beneficiaries will vote for a specific candidate based on how their views might affect their benefits.

Top policy recommendations from survey respondents for improving the COLA process for Social Security recipients:

• Increase COLA adjustments to more accurately reflect cost of living and inflation (58%)

• Provide extra financial support for essential costs, like healthcare and housing (49%)

• Introduce minimum guaranteed benefits to ensure financial stability (45%)

Methodology

We surveyed 650 Americans receiving Social Security disability benefits regarding the 2024 COLA decrease and the projected adjustments for 2025. The average age of respondents was 44 and comprised 47% males, 50% females, and 3% non-binary individuals. Their generational makeup included 15% baby boomers, 33% Gen X, 40% millennials, and 12% Gen Z.

About Atticus

Atticus is a public interest law firm that helps Americans in a crisis secure aid from the government. Through a dedicated team of lawyers and client advocates, we specialize in helping individuals claim their rightful benefits in challenging times.

Fair use statement

If you want to share these findings, please feel free to do so for any non-commercial purpose. We ask that you include a link back to our page, offering access to the full breadth of our research and insights.