Social Security Beneficiaries to Receive COLA Increase in 2024
(NewsNation) — 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.
What is the COLA Increase?
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.
Why is the COLA Increase Important?
COLA increases are a standard practice in the Social Security program. These adjustments ensure that the benefits provided maintain their value over time.
How is the COLA Increase Calculated?
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.
Preliminary Projection for 2024
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.”
Expected Monthly Increases
- Retiree: $55
- Worker with disabilities: $44
- Senior couple: $89
- Widow: $51
- Widow with two children: $106
When Will Recipients See the Increase?
Recipients should start to see the COLA increase on their monthly checks starting in January 2024. Checks are disbursed on scheduled Wednesdays each month, depending on the recipient’s birth date and when they started receiving Social Security benefits.
Official Announcement and Medicare Part B Premiums
The official announcement of the 2024 COLA increase will be made on October 12, upon the release of the third-quarter inflation data for 2023. It is important to note that Medicare Part B premiums, which are automatically deducted from most beneficiaries’ Social Security checks, can have a major impact on the overall increase.
Stay Informed
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.
