According to the Social Security Administration (SSA), more than 66 million seniors who receive Social Security would see an increase in their monthly government payouts in 2024.
The purpose of the cost-of-living adjustment (COLA) for SSI and Social Security benefits is to keep retirees current with rising living expenses. It is the same as getting a private annuity with inflation protection.
The Consumer Price Index (CPI) increase for Urban Wage Earners and Clerical Workers is used to calculate this COLA.
What Did Social Security Say About 2024 COLA?
The Social Security Administration revealed this week that the cost-of-living adjustment (COLA) for 2024 will be 3.2%.
According to a news release from the SSA, the 3.2% COLA will start to be received by more than 71 million Americans will get monthly increase in January 2024.
#BREAKING! More than 71 million Americans will get a 3.2% increase in monthly #SocialSecurity benefits and #SSI payments in 2024. Check our blog for more information: https://t.co/2RWlgZ3CVz #COLA #2024COLA pic.twitter.com/y7F19zqFWz
— Social Security (@SocialSecurity) October 12, 2023
This adjustment comes after the substantial 8.7% COLA in 2023, which was the biggest rise since 1981 and a response to strong inflation. Jack Farley said that a hugely stimulative fiscal boost in 2023 will not be here in 2024.
Just in – a hugely stimulative fiscal boost in 2023 will not be here in 2024.
Or at least, severely curtailed.
Social Security cost-of-living-adjustment (COLA) just announced to be 3.2% for 2024, down big from 8.7% adjustment in 2023@LukeGromen @VincentDeluard pic.twitter.com/ns3UHVx4lc
— Jack Farley (@JackFarley96) October 12, 2023
The importance of COLAs in ensuring retirees’ financial security is demonstrated by the fact that the 2023 COLA resulted in an average monthly benefit increase of over $140.
The Consumer Price Index for All Urban Wage Earners and Clerical Workers (CPI-W) serves as the foundation for the COLA.
The Social Security Administration calculates the COLA for Social Security benefits for the following year, beginning with benefits paid in January 2024, by averaging the year-over-year CPI-W for July (2.63%), August (3.40%) and September (3.56%).
Remember that the government has an incentive to fake CPI (inflation) to artificially keep it lower than reality. This results is a lower COLA each year.
🚨🚨🚨The Cost-of-Living Adjustment (COLA) for Social Security benefits for the calendar year 2024 will be 3.2%, according… pic.twitter.com/e7pCBm2NwU
— Wall Street Silver (@WallStreetSilv) October 13, 2023
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COLA Uplift for 2024
Despite this decline, the COLA of 3.2 percent is still higher than the 2.6 percent average of the previous two decades. This annual adjustment has decreased from the nearly four-decade highs of the prior year and is based on inflation statistics from August through October.
What Percentage of Social Security Benefits Will Increase in 2024?
Benefit recipients who are dealing with increased living costs will find respite from Social Security retirement payments, which will increase by an average of nearly $50 each month.
The maximum wages subject to the Social Security tax will increase from $160,200 to $168,600 as a result of other yearly adjustments based on average pay increases.
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