The maximum Social Security benefit checks in the United States have a different amount each year. Likewise, every other type of Social Security retirement benefit amount, regardless of whether it is for disability or some other reason, also changes. In order to combat inflation, the SSA and the United States Government increase retirement checks every year.
Therefore, we may find that each new year that begins we see an increase in benefits. This increase depends on several factors and it is the Cost of Living Adjustment (COLA) that is responsible for this increase. Thanks to the COLA retirees in the United States will get a check increase of $58 for most cases.
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Still, not all Americans can access this $58 increase. It is important to note that every American will get a different increase in their checks. Therefore, an American who collects the maximum of $4,555 per month will not see a $58 increase, but a different one. The important thing in these cases is that we can do the calculation quickly, plus each and every American will have access to the COLA.
The ultimate goal of the COLA is to be able to effectively combat inflation. Thanks to this annual increase Social Security beneficiaries can have a little extra money every month with which to deal with the general price increase. Do you already know how much your retirement will increase by next year 2024?
HOW MUCH WILL SOCIAL SECURITY BENEFITS INCREASE?
The increase in each of your Social Security checks through the COLA will be 3.2%. This means that the $58 per month increase is for an average benefit that is around $1,888 per month today. All other benefits will increase based on what the current benefit amount is.
If we have a maximum benefit of $4,555, for example, the check will reach approximately $4,700. This makes the check increase by almost $150, which is apparently little money but if we take into account the full year of payments it is a larger amount.
Likewise, each and every check sent out by the Social Security Administration will have this increase: Supplemental Security Income payments, the disability benefit check, widow’s and widower’s payments, etc.
WHEN WILL THE COLA COME INTO EFFECT TO INCREASE RETIREMENT CHECKS?
The COLA will begin to take effect on the first of the Social Security payments in 2024. This means that from then on each check will carry the 3.2% increase. Even though the COLA is for 2024, many Americans will be able to enjoy the first of the payments with this increase in 2023 itself.
To do so, two requirements must be met. The first of these requirements is to have Supplemental Security Income. The second requirement is to have Direct Deposit activated. Since the SSI payment is due on the 1st of each month and January 1st is a holiday, the Administration sends the payment on the immediately preceding business day.
This allows Direct Deposit recipients to get their January 2024 SSI check on the 29th day of December. However, beneficiaries without Direct Deposit will have to wait, as usual, to have the money available.
All other payments with the added COLA will follow the usual Social Security schedule. So many Americans will have to wait until the 3rd of January or the second, third and fourth Wednesdays of the month to see what the increase in their checks will definitely be.