In an announcement made by the Social Security Administration (SSA), over 71 million Americans will receive an increase of 3.2 percent in their Social Security and Supplemental Security Income (SSI) benefits in 2024. This welcome news comes as many retirees and individuals with disabilities grapple with the rising cost of living, and the adjustment aims to alleviate some of these financial pressures.
The SSA reports that the average increase in Social Security retirement benefits will be more than $50 per month, with the adjustments set to take effect in January 2024. Of the 71 million beneficiaries, over 66 million will experience the 3.2 percent cost-of-living adjustment (COLA) in their Social Security benefits, beginning in January. Additionally, approximately 7.5 million individuals who receive SSI benefits will start seeing increased payments from December 29, 2023. Notably, some individuals are eligible for both Social Security and SSI benefits.
Kilolo Kijakazi, Acting Commissioner of Social Security, expressed the significance of these adjustments, stating, “Social Security and SSI benefits will increase in 2024, and this will help millions of people keep up with expenses.” The COLA is a crucial mechanism to ensure that beneficiaries’ income keeps pace with the rising cost of living, providing a safety net for retirees, disabled individuals, and their families.
Apart from the COLA increase, there are other annual adjustments based on the rise in average wages. In response to this, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will see an increase from $160,200 to $168,600. This adjustment reflects the broader economic trends and aims to maintain the program’s financial stability.
The SSA takes proactive steps to inform beneficiaries about their new benefit amounts. Starting in early December, they mail notifications to individuals, ensuring they are aware of their upcoming benefit changes. Those with a personal my Social Security account have the added convenience of viewing their COLA notice online, offering a secure, easy, and faster alternative to receiving physical letters. Moreover, individuals can opt for text or email alerts to be notified when important messages, including their COLA notice, are waiting for them in their my Social Security account. To access this feature, individuals need to establish a my Social Security account by November 14. The process is streamlined and accessible through the SSA’s official website at www.ssa.gov/myaccount.
For beneficiaries enrolled in Medicare, the SSA provides information about Medicare changes for 2024. They can expect to receive their new benefit amount in December through the mailed COLA notice and the Message Center on their my Social Security account.
The calculation of the COLA is governed by the Social Security Act, which links the annual COLA to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), as determined by the Department of Labor’s Bureau of Labor Statistics. This ensures that the COLA accurately reflects the real-world cost-of-living adjustments that affect retirees and individuals with disabilities.
For further details and comprehensive information, individuals can visit the SSA’s official website at www.ssa.gov/cola.
