Social Security COLA Increase 2024 : When Will you receive the Increase amount ? Know All the Updates Here

In this article, you’ll learn all about the Social Security COLA 2024 increase – what it is, when it’s coming, how much it will be, and who will receive it. This cost-of-living adjustment helps offset inflation so Social Security benefits maintain their purchasing power. For 2024, analysts expect Social Security COLA 2024 estimate of around 3.2%. This is based on rising inflation driven by high energy and food costs. The actual percentage won’t be announced until October 2023 when the third quarter CPI-W data is finalised. But a 3-4% Social Security COLA 2024 would mean about a $55 to $73 increase in the average monthly retirement benefit of $1,668.

Social Security COLA Increase 2024

The Cost of Living Adjustment (COLA) for Social Security benefits is an annual increase meant to offset inflation. This ensures that the purchasing power of Social Security income does not decline over time. In this article, you will learn all about the social security COLA 2024 estimate increase– when it will happen, how much it will be, and who will receive it. This information is useful for anyone currently receiving Social Security benefits as well as those planning for retirement.

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What is Social Security’s COLA?

COLA stands for Cost of Living Adjustment. It is an annual increase in Social Security benefits meant to counteract the effects of inflation. Prices tend to go up over time, so the buying power of a fixed Social Security benefit would erode from one year to the next without a COLA. By law, the COLA increase is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). When the CPI-W goes up due to inflation, so do Social Security benefits.

2024 Social Security COLA Increase Highlights

Topic Details
COLA Cost of Living Adjustment to offset inflation

Annual cost of-living increases by year to Social Security benefits

Social Security COLA 2024 Amount Expected to be 3.2% –

Announced in October 2023

Social Security COLA 2024 Dollar Increase Average $1,668 benefit may increase $50-$67/month
COLA Eligible Social Security retirement, disability and survivor beneficiaries

Supplemental Security Income (SSI) recipients

Others receiving Social Security benefits

 

Social Security COLA Increase 2024 : When Will you receive the Increase amount ? Latest Update Today

How much is the 2024 COLA Increased?

The Social Security Administration will announce the official 2024 COLA in October 2023. Early predictions put it around 3.2 % based on inflation trends. For some context, here are the cost of-living increases by year in the past five years:

Year COLA Percentage Average Monthly Increase
2023 8.7% $146
2022 5.9% $92
2021 1.3% $20
2020 1.6% $24
2019 2.8% $39

 

As you can see, the COLA can vary significantly from year to year. It all depends on inflation. Check the official SSA announcement in October 2023 for the exact Social Security COLA 2024 amount.

Who will Get the 2024 COLA Increase?

The COLA affects the monthly benefit payments for these Social Security beneficiaries:

  • Retirees – Individuals receiving Social Security retirement benefits will see their monthly payments increase by the 2024 COLA.
  • Survivors – Widows, widowers, and other surviving family members receiving survivor benefits will automatically get the 2024 COLA increase.
  • Disabled – Those receiving Social Security disability benefits will see the COLA applied to their monthly check.
  • SSI Recipients – The Social Security COLA 2024 also impacts Supplemental Security Income (SSI) benefits paid to adults and children with disabilities or blindness who have limited income and resources.
  • Others – The cost of-living increases by year also applies to recipient payments from the Special Benefits for Certain World War II Veterans.

Anyone receiving Social Security or SSI benefits from the SSA will see their monthly payment go up by the 2024 COLA percentage. This helps protect their buying power against the effects of inflation.

When Will the 2024 COLA Increase Happen ?

For Social Security recipients, the timing of the COLA depends on your birth date.

  • If your birthday is on the 1st through the 10th of the month, you’ll get the Social Security COLA 2024 increase on your January 2024 benefit payment.
  • If your birthday falls on the 11th through the 20th, the COLA starts with your February 2024 check.
  • For birthdays from the 21st to the 31st, the increase begins in March 2024.

The same schedule applies to SSI COLA increases. So watch your January, February, or March 2024 benefit payment for the bump from the new 2024 COLA.

We hope this information on the expected Social Security COLA 2024 increase gives you a better understanding of how this annual adjustment protects retirees from inflation. Knowing when the increase is coming and how much extra you can expect in your monthly checks next year helps you plan your budget.

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