The rate of inflation may be slowing, but more than two-thirds of seniors have seen their monthly budget for essentials like housing, food and prescription drugs increase by 10% from a year ago.
Data from the Senior Citizens League, a think tank that advocates for seniors, shows that the goods and services seniors need have the most sustainable inflation.
This is because the cost of living increased by just under 0.1% in November as a result of lower oil prices. Still, another key inflation measure showed higher costs of other goods and services, such as rent and used cars.
Read: Inflation is persistent in November, according to the CPI, due to higher rents and used car prices
“Housing, car insurance, the cost of hospitals and caring for the disabled at home — these are the black holes that drain savings even when inflation is low,” said Mary Johnson, Social Security and Medicare policy analyst for the Senior Citizens League. “Yet these are precisely the categories that are currently experiencing the most persistent and painful inflation.”
The Senior Citizens League has compiled a list of things seniors might spend money on during the holidays — including food for the holiday table and gifts like tickets to sporting events, as well as regular expenses — that have seen the biggest price increases. Housing costs, Johnson noted, account for more than 40% of the average senior’s household budget.
Item | Percentage increase |
Motor vehicle insurance |
19.2% |
Access to sporting events |
16.4% |
Repair of motor vehicles |
12.7% |
Beef roast |
12.5% |
Veterinary services |
9% |
Outpatient hospital services |
7.3% |
Rent |
6.9% |
Homeowner costs |
6.7% |
Care for the disabled at home |
6.5% |
Frozen vegetables |
6.1% |
Source: Bureau of Labor Statistics, November CPI-U data, December 12, 2023. Compiled by the Senior Citizens League. |
Older adults will be notified by mail this month about the cost-of-living adjustment to their Social Security benefits.
The new 3.2% COLA will take effect in January. However, Johnson noted that rising Medicare Part B premiums will provide a greater share of benefits, as will tax deductions.
In 2023, the COLA was 8.7%.
Read: Social Security’s 2024 COLA is 3.2%, compared to the historical inflation-driven adjustment of 8.7% in 2023
Social Security beneficiaries can also view their COLA notice on the Social Security Administration website. They must create or log into their My Social Security account.
According to the National Institute on Retirement Security, a total of 40% of older Americans rely on Social Security as their sole income in retirement.
Read: Medicare Part B will increase about $10 per month by 2024