Social Security will send new payments and new amounts after the 2024 COLA increase. If you are wondering what COLA means, it is simply the Cost of Living Adjustment.
This is the way for Social Security to increase benefits and help beneficiaries maintain their buying power. Inflation makes prices for goods, food, and services go up, so those on retirement, SSDI, or SSI can suffer the most, and not just from a financial point of view.
Despite the fact that there are two more Social Security retirement payments left, none of them will have the new COLA included. As a matter of fact, December 29 will be the day when about 5 million Americans receive their new COLA increase.
WHO WILL RECEIVE FIRST THE 3.2% COLA INCREASE FROM SOCIAL SECURITY?
Even if SSI payments are not funded by the Administration, SSA arranges their payments. Actually, SSI recipients will be the first beneficiaries to get a 3.2% extra per month on December 29, 2023.
If this is your first SSI payment, it may surprise you that it comes by the end of the month. The reason why you will not receive it on January 1 is because that day is a holiday.
Then, the Social Security Administration confirmed that the January SSI checks would arrive on December 29 instead. Undoubtedly, this is great news because this payment is for low-income families.
As everything is so expensive, millions of Americans rely on credit cards to get by. This is particularly dangerous because interest rates are really high too. So, you may not have enough money if you are just on Social Security to pay it back.
MOST RETIREES AND SSDI BENEFICIARIES WILL GET THEIR COLA INCREASE IN 2024
The first retirees or SSDI recipients to cash the extra money from Social Security will be those who first applied for benefits. So, if you started receiving benefits before May 1997, your COLA increase will arrive on January 3.
If you do not qualify for this Social Security payment, you must pay special attention to your birth date. This will be the way the Administration arranges payments every year.
For example, if your birthday is on the 1st of the month, your check will be in your bank account on January 10, 2024. Social Security sends these payments on the second Wednesday of January if your birthday is from 1-10.
Those whose birthday is from 11-20 will get their COLA boost on January 17. The last ones to receive their COLA increase will be those whose birthday is from 21-31. Average SSDI and retirement checks will be $1,537 and $1,907 in 2024 respectively. SSI checks up to $943 (single) or $1,415 (married).
