The Social Security Administration (SSA) has announced a 3.2% cost-of-living adjustment (COLA) for 2024, affecting over 71 million Americans who receive Social Security benefits and Supplemental Security Income (SSI) payments. This increase reflects the rising cost of living and ensures that beneficiaries’ purchasing power remains stable.
COLA Increase and Effective Date
The COLA increase of 3.2% will be applied to Social Security benefits and SSI payments starting in January 2024. This means that beneficiaries will receive their first increased payment in January 2024.
COLA Calculation
The COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures changes in the cost of goods and services purchased by urban wage earners and clerical workers. The COLA percentage is equal to the percentage increase in the CPI-W from the third quarter of the previous year to the third quarter of the current year.
Impact on Benefit Amounts
The COLA increase will result in higher monthly benefit payments for Social Security and SSI recipients. The exact amount of the increase will vary depending on the individual’s current benefit level.
COLA Notice and Availability
The SSA will mail COLA notices to beneficiaries throughout December 2023. However, beneficiaries can access their COLA notice online through their personal my Social Security account starting in early December. This option is available for most beneficiaries who created their accounts by November 14, 2023.
Additional Information
For more information about the COLA, beneficiaries can visit the SSA website or contact their local Social Security office.
The 2024 COLA increase is a welcome news for millions of Americans who rely on Social Security and SSI benefits. This increase will help them maintain their purchasing power and offset the rising cost of living.
Frequently Asked Questions
Q: How much will my Social Security or SSI benefit increase in 2024?
A: The exact amount of the increase will vary depending on your current benefit level. However, you can estimate the increase by multiplying your current benefit amount by 3.2%.
Q: When will I receive my first increased payment?
A: You will receive your first increased payment in January 2024.
Q: How can I access my COLA notice online?
A: You can access your COLA notice online through your personal my Social Security account if you created your account by November 14, 2023.
Q: What is the CPI-W and how is it used to calculate the COLA?
A: The CPI-W is the Consumer Price Index for Urban Wage Earners and Clerical Workers. It measures changes in the cost of goods and services purchased by urban wage earners and clerical workers. The COLA percentage is equal to the percentage increase in the CPI-W from the third quarter of the previous year to the third quarter of the current year.
Q: Where can I find more information about the COLA?
A: You can find more information about the COLA on the SSA website or by contacting your local Social Security office.
Disclaimer:
The information provided in this article is for general knowledge and informational purposes only, and does not constitute professional financial advice. It is essential to consult with a qualified financial advisor to discuss your specific financial situation and retirement goals.
Here’s why some Social Security recipients will receive two checks this week
Due to a glitch in the system, some Americans will receive two Social Security payments this week—a rare occurrence.
The Social Security Administration normally only distributes one payment per week, with checks arriving on the second, third, and fourth Wednesdays of each month. Then, unless it falls on a weekend or holiday, it pays Supplemental Social Security Income on the first of each month, which supports elderly Americans with low incomes and disabled persons.
Due to March 1 falling on the fourth Wednesday of February, some people on SSI will get paid for both this week. That means roughly 7. On Friday, March 1, SSI recipients who number four million will get their March payments.
To be clear, the consecutive deposits are simply an early payment for the following month; they do not indicate that retirees are receiving additional funds.
This is slated to happen two more times this year, in August and November, according to a schedule of payments on the Social Security Administrations website.
Although retirees saw a slight increase in their standard of living this year, many have reported finding it difficult to make ends meet as a result of persistently high inflation, which has quickly reduced their purchasing power.
A recent survey published by Atticus found that an overwhelming percentage of seniors collecting Social Security — about 62% — are dissatisfied with the 3.2% payment increase theyre receiving in 2024.
Actually, almost three out of five seniors reported financial difficulties because the cost of basic necessities like food, rent, and medical care continues to be uncomfortably high, and approximately 2020% of seniors receiving social security plan to look for work this year due to the slight increase.
Concerns about rising utility, insurance, heating, and food costs were voiced by retirees.
Beginning in January, more than 66 million Americans who are receiving Social Security benefits received larger payouts.
The payment increase represented a sharp decrease from 2023, when beneficiaries were given an 8 7% bump, the highest in four decades. However, it remains higher than the 2. 6% average increase recorded over the past two decades.
This kind of increase increased the average monthly retiree benefit of $1,907 by approximately $59
The consumer price index for Urban Wage Earners and Clerical Workers, or CPI-W, from July, August, and September is used to calculate the annual Social Security change.
When your notice will arrive in the mail: We mail COLA notices throughout the entire month of December. It is possible that your friend or family member will receive their notice in the mail before you. Please wait until January before contacting us about your mailed notice. However, you may not need to wait for your mailed notice to learn your new benefit amount for 2024: you can view your COLA notice online with your personal my Social Security account starting in early December.
When the increase becomes effective: In January 2024, Social Security beneficiaries will start receiving the increased benefits. The December 29, 2023 payment will mark the start of increased SSI benefits.
Create an account to receive an email or text message whenever your COLA notice becomes available online. In addition, you can handle your benefits and much more with your account!
Who can see their notice online: COLA notices are available online to most beneficiaries through the Message Center of their personal my Social Security account if they created their account by November 14, 2023. my Social Security is a secure, convenient way to receive COLA notices online and save the message for later. You can also opt out of receiving notices by mail that are available online.
The amount of the increase is three percent more for over 71 million Americans who receive Social Security benefits and Supplemental Security Income (SSI) payments. 2% in 2024. This is the annual cost-of-living adjustment (COLA). Federal benefits are legally increased in response to increases in living expenses, as determined by the Department of Labor’s Consumer Price Index for Urban Wage Earners and Clerical Workers.