As 2024 approaches, Social Security beneficiaries, including those receiving Disability Insurance (SSDI) and Supplemental Security Income (SSI), are anticipating changes in their monthly payments. These adjustments, designed to address inflation and rising living costs, are part of the annual Cost-of-Living Adjustment (COLA) implemented by the Social Security Administration (SSA). Here’s a detailed breakdown of what to expect in the new year.
Understanding the 2024 COLA Increase
The SSA’s COLA ensures that Social Security payments keep pace with economic shifts. For 2024, the COLA is set at 3.2%, leading to an average monthly increase of approximately $50 for beneficiaries. This adjustment helps recipients maintain purchasing power in light of ongoing inflation.
Who Will Benefit from the COLA Adjustment?
The 3.2% increase applies to all categories of Social Security recipients, including:
- Retirees: Individuals receiving retirement benefits will see the adjustment reflected in their monthly payments.
- SSDI Recipients: Those receiving disability benefits are eligible for the increase.
- SSI Beneficiaries: Supplemental Security Income recipients will also receive higher monthly payments.
- Survivors: Spouses, children, and parents receiving survivor benefits are included in the COLA adjustment.
Payment Schedule for 2024
The SSA will begin issuing COLA-adjusted payments in January 2024 following its standard distribution schedule:
- SSI Payments: Typically sent on the first of each month.
- Social Security Payments: Based on the recipient’s birth date:
- 1st–10th: Payments issued on the second Wednesday of the month.
- 11th–20th: Payments issued on the third Wednesday of the month.
- 21st–31st: Payments issued on the fourth Wednesday of the month.
Payment Methods
Beneficiaries have two primary options for receiving their payments: