Here's What Seniors Can Buy With Extra $59 Social Security Payments

Retirees who receive Social Security payments will see their payments go up by a little more than 3 percent in 2024, adding close to $60 to those monthly checks.

The increase comes as a result of a cost-of-living adjustment instituted by the Social Security Administration (SSA) to help seniors as they grapple with elevated inflation.

Inflation at one point hit 9 percent last year but has fallen to 3.1 percent in November, still higher the Federal Reserve target of 2 percent.

So, how much can the extra $59 that seniors will be receiving help them buy? The cash could go a long way toward paying for some key grocery items, according to data from the U.S. Bureau of Labor Statistics.

In November, the average prize of grade A eggs per dozen was $2.14, down from nearly $5 in January. Meanwhile, fresh milk per gallon will set consumers back $4. A pound of beef is at $5.20, while a pound of chicken costs nearly $2. Bread also costs about $2. A pound of oranges will be about $1.66, while a pound of bananas will cost less than a dollar.

These goods tend to be the type of essentials that households rely on for everyday sustenance. And it looks like that $59 extra cash could be enough to cover the cost.

Newsweek reached out to the SSA via email on Friday afternoon for comment.

The cost-of-living adjustment is done to hedge against the price increases that come with inflation.

"The change means that inflation no longer drains value from Social Security benefits," the SSA has said.

About 70 million Americans depend on the monthly payments from the SSA, and retirees can start collecting the benefits at age 62.

The cost-of-living adjustment of 3.2 percent this year is lower than the 9 percent increase retirees received in 2023. The adjustments began in 1975 to reflect inflationary changes that may be happening in the economy.

"The purpose of the COLA is to ensure that the purchasing power of Social Security and Supplemental Security Income (SSI) benefits is not eroded by inflation," a spokesperson at the SSA told Newsweek this month. "It is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers."