Like every year, United StatesSocial Security beneficiaries will see an increase in their retirement benefits starting with the first of the payments. In this coming year 2024 the COLA increase will not be as large as in the current year 2023, but an increase is always an increase. So, with the COLA already officially announced, we can know how all benefits will change.
Just by having a previously accepted Social Security check we can know how much we will get in the coming months. This increase will take effect in January 2024 and not before. It is important to keep this in mind at all times. Although the COLA has already been announced, the benefit increase will not arrive until next year 2024.
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Thus, retirees will be able to fight inflation from the beginning of January 2024. The problem is that some retirees collecting Social Security will not be able to effectively fight inflation because the COLA may seem insufficient. Best of all, the COLA is a percentage and makes all checks go up equally. But that also has its downside.
While recipients with a larger check will still be able to effectively fight inflation, those with a smaller, humbler benefit may struggle financially. Still, there are other Social Security supplemental payments like Supplemental Security Income that help beneficiaries pay month-to-month expenses and bills.
SOCIAL SECURITY PAYMENTS AFTER 2024
Once we apply the COLA each check will increase by 3.2%. That figure will not change as that is the official announcement and we will not have a different amount. So if we have a $1,000 check we will see a $1,032 check starting next January 2024. This means that for every $1,000 we are going to get an extra $32.
The ratio is always the same. We just have to add 3.2% to the check we currently have. In the case of maximum benefits, the cap becomes different. In those cases we have the following:
- Supplemental Security Income maximum benefit: from $914 in 2023 will go to $943 in 2024.
- Maximum SSDI benefit: From $3,627 to a maximum of $3,743 per month.
- Maximum Social Security retirement benefit at age 70: From $4,555 in the current year to $4,700 next year.
- Maximum Social Security benefit at age 67 (Full Retirement Age): The check will go from $3,627 to a maximum of $3,743.
So the maximum total Social Security check for next year will be $4700. At most, the Administration will increase payments by about $150, although each beneficiary will get a different increase.
WHEN WILL WE START GETTING THE 2024 COLA?
Interestingly, the first of the Social Security payments with the added 2024 COLA will not arrive in 2024 for many Americans. The first of these payments will be the January Supplemental Security Income and will arrive earlier if you have Direct Deposit activated. The reason is very simple, and that is that there is a timing irregularity.
Americans who have this benefit and Direct Deposit activated will receive their SSI check on December 29th. This is because January 1st is a holiday, so the Administration sends the check earlier.
And this check will go with the 3.2% COLA added, so it is good news that we can get the increased payments early. The rest of the Social Security checks with the added COLA will arrive starting in January 2024 as is customary in these cases. A payment will arrive on January 3rd and then on the second, third and fourth Wednesday of the same month. Each payment day will be different for each group of retirees, so check the calendar carefully to be sure of your payment day.