Since the COLA was implemented for all Social Security benefits in the United States, this measure to keep retirees from losing purchasing power has become critical. Otherwise, retirees could find themselves in very adverse situations where the Social Security check would not be enough to combat inflation.
So each and every time the COLA acts in a direct way by increasing checks Americans are in for a treat. Still, we must watch out, as it is not every year that the United States Government increases benefits through the Cost of Living Adjustment. There are times when the increase is 0% and Social Security benefits do not increase.
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But it is true that when that situation has occurred, it has been because the COLA did not need to act. In other words, if in one year there is no COLA to increase the benefit, it means that there has not been a sufficiently high inflation to make this measure necessary.
What is certain is that pensioners will always welcome these increases in their pensions, even if inflation does not hit during the year. In any case, it should also be kept in mind that sometimes the COLA is too small, so there are years when even if the checks increase it may not be enough.
WHEN WILL WE SEE THE 2024 COLA INCREASE IN SOCIAL SECURITY?
Starting with the first Social Security checks the COLA will be added to the pensioner’s pension amount. This means that as of January 2024 we will find ourselves with extra money that we can use for whatever we need. Still, the first of the Social Security payments with the 2024 COLA could arrive in December 2023, although only to a specific group of Americans.
Citizens with a Supplemental Security Income benefit will be in luck and will hopefully get a check early. To do so, the citizen with this benefit must have Direct Deposit activated. This will result, due to an irregularity in the calendar, in the payment being received on December 29, 2023.
Thereafter, all payments will have the COLA 2024 added to them. That means that Social Security retirement or disability benefits on January 3 will also have the increase added to them. And so on through the end of the year. The increase will take effect and there will be no going back.
WHAT WILL THE 2024 COST OF LIVING ADJUSTMENT BE?
The 2024 COLA will reach 3.2%. This means that the experts’ forecasts are undoubtedly correct. The Senior Citizens League predicted this figure and we have finally had this amount. Each and every Social Security benefit will have this increase.
While it is true that it is a far cry from the 8.7% increase we have seen in 2023, it is also true that inflation this year has been lower. For that reason, we have a lower COLA. It is still more than enough to cover this year’s inflation.
The problem that retirees may face is that inflation may increase much more before the end of the year. In that case, retirees will have to settle for the COLA already announced. After the announcement there will be no change in the COLA, so that will be the increase starting next year 2024.
In the maximum Social Security check we will find that it will go from $4,555 per month to $4,700 per month. This means that the maximum increase will be around $150. An increase that does not seem too large, but seen in this light, it is more than enough. Likewise, the first of the 2024 checks will be the Supplemental Security Income, which after the COLA 2024 the maximum payment will increase to $943 per month.