The Social Security Administration (SSA) has revealed a 3.2% increase in benefits for 2024, impacting over 71 million Americans, including retirees, individuals with disabilities, and those receiving Supplemental Security Income (SSI). This Cost-of-Living Adjustment (COLA) is designed to help beneficiaries cope with rising inflation. The new payment amounts will be reflected in checks starting in January 2024 for most recipients, with SSI beneficiaries seeing the increase a few days earlier on December 29, 2023.
Key Details of the 2024 COLA Increase:
- COLA for 2024: 3.2%
- Beneficiaries Affected: 71 million Americans, including retirees, people with disabilities, and SSI recipients
- New Payment Start Date: January 2024, with SSI recipients receiving their first payment increase on December 29, 2023.
- Average Monthly Increase: About $50 more for retirees
- COLA Calculation: Based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), measuring inflation trends from the third quarter of the previous year.
Understanding COLA:
Cost-of-living adjustments (COLA) are periodic increases made to Social Security and SSI benefits to help maintain purchasing power in the face of inflation. The increase is calculated using the CPI-W, which tracks the cost changes of goods and services like food, housing, and healthcare. The 2024 COLA increase is based on inflation data from the third quarter of 2023, compared with the same period in 2022. While the 3.2% rise is smaller than the previous year’s historic 8.7%, it remains an important financial cushion for beneficiaries affected by inflation.
Who Benefits from the Increase?
The COLA applies to individuals receiving Social Security benefits, which include:
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- Retired workers
- Disabled workers under Social Security Disability Insurance (SSDI)
- Survivors of deceased workers
- SSI recipients
The exact amount of the increase varies depending on each individual’s current benefit. For instance, retirees currently receiving an average of $1,827 monthly will see an increase of around $50 per month starting in January 2024.
Why Is COLA Crucial?
As inflation erodes the value