Social Security beneficiaries can expect a cost-of-living adjustment (COLA) increase in 2024, according to multiple reports. The news comes as a welcome relief for millions of Americans who rely on these benefits to cover essential expenses.
Here’s what you need to know about the upcoming adjustment:
The COLA increase is designed to help Social Security benefits keep pace with the rising cost of living. While the exact percentage of the increase has not been officially announced, sources indicate that it is expected to be in line with current inflation rates.
COLA increases are a standard practice in the Social Security program. These adjustments ensure that the benefits provided maintain their value over time.
As the basis for determining the COLA increase, the Social Security Administration utilizes the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the previous year to the third quarter of the current year.
There has been a continued upward trajectory of the CPI-W since 2022.
Based on these economic principles, a marca.com report suggests a preliminary projection of a 3% COLA increase for 2024.
According to CNET, the 2024 increase is not expected to be as big as last year’s record 8.7% monthly payment increase, but “it should be enough to make a noticeable difference in January.”
After an assumed 3% COLA increase for 2024, a retiree can expect to see a monthly increase of $55; a worker with disabilities, $44; a senior couple, $89; a widow, $51, and a widow with two children, $106.
Recipients should start to see the COLA increase on their monthly checks starting in January 2024.
Checks are disbursed on scheduled Wednesdays each month. The schedule depends on your birth date and when you started receiving Social Security benefits.
The official announcement of the 2024 COLA increase is eagerly awaited and an exact figure will not be unveiled until Oct. 12, upon the release of the third-quarter inflation data for 2023.
In addition, Medicare Part B premiums play a role in Social Security recipients’ bottom line.
Part B premiums are automatically deducted from most beneficiaries’ Social Security checks, and those deductions can have a major impact.
Mary Johnson, the Senior Citizens League’s Social Security and Medicare policy analyst, warned, “Part B premium increase can take most, or even all, of the COLA.”
For more information and updates on the upcoming COLA increase, beneficiaries are encouraged to visit the official Social Security Administration website or consult their local Social Security office.