Starting a new year means many things for citizens around the world, but in the case of Social Security users in the United States it also means having a new COLA. And in this case the COLA announcement was already made official, so in just a couple of months we are going to be able to enjoy an increase in benefits.
Last October 12th, the United States Government announced that the Cost of living adjustment (COLA) will be 3.2% for next year. This means that each and every check issued by the Social Security Administration will carry that increase starting January 2024. This is both good news and bad news, as it may seem insufficient to some.
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Leaving aside whether the COLA 2024 is insufficient or not, what is important is to know exactly what the amount of the Social Security checks will be after the increase is applied. Knowing these figures perfectly, we will be able to make a calculation and, therefore, we will be able to organize our household finances in the best possible way.
So if you have a Social Security check as your regular source of income, you’ll want to know all the details about the COLA 2024. And we’re not just talking about what the amount will be, which we’ve already discussed, but also when it will begin to take effect on Social Security benefits and other financial help checks.
HOW WILL SOCIAL SECURITY INCREASE WITH COLA 2024?
Considering that the COLA 2024 increase will be 3.2%, calculating benefits in general is relatively easy. To know the final result perfectly, all we have to do is add that percentage to the check we currently receive.
#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
Thus, we find that the maximum age retirement check in 2023 is $4,555, so in 2024 it will be $4,700 per month. The increase is almost $150, something that may seem insignificant but if we take into account that there are 12 annual payments at the end of the year we will have $1,800 more.
Therefore, we find ourselves with almost 2,000 dollars extra before the end of the year. Although not all benefits will have such a large amount. If we take the average check of $1,888 per month the end result by adding COLA 2024 to it is $1,948. The increase in this case is $60, which while not as much as in the maximum payment is also enough to combat some of the inflation.
WILL DISABILITY PAYMENTS ALSO INCREASE IN 2024?
In 2024, everyone getting disability benefits, like other retirees, will receive a 3.2% cost of living adjustment (COLA) boost. This means if you’re on SSDI, your monthly check will rise by 3.2%. For example, if you received the maximum SSDI of $3,627 in 2023, in 2024 you’ll get $3,743 – that’s a $116 increase.
But it’s not just the SSDI recipients who will benefit. Every check from the Social Security Administration will get this 3.2% bump because of COLA 2024. Taking another instance, Supplemental Security Income (SSI) recipients will see their monthly payments go up as well. In 2023, the highest SSI check was $914. If you’re a couple on this benefit, you’d get double. Come 2024, the maximum SSI will be $943 for individuals and a whopping $1,889 for couples. And that’s if you’re at the top SSI benefit level.
Wondering about your own benefits? To figure out your new amount for 2024, simply apply the 3.2% COLA to what you received in 2023. This easy calculation gives you a clear idea of your upcoming Social Security payment. Remember, these adjustments aim to help keep up with the rising cost of living, ensuring everyone’s financial well-being.