All citizens receiving a Social Security benefit in the United States will be able to enjoy an increase in the coming year. This increase will be made through the Cost of Living Adjustment (COLA) and will begin in January.
The calculation of this increase for Social Security benefits is made through several studies conducted on price inflation throughout the year. To be exact, in the third quarter is the key to calculate the COLA for each year.
Therefore, the inflation and price increases in the months of July, August and September are the key to know what the COLA increase of the next year will be. Apparently, in 2024 we will see a 3.2% increase, but that is only an estimate as of today.
While it is true that there is no official data, it is possible that the COLA increase will be very close to that figure. If so, the increase will be much smaller than that of 2023, which this year reached a record 8.7%, something not seen in decades.
WHEN WILL WE KNOW THE EXACT AMOUNT OF THE 2023 SOCIAL SECURITY COLA?
The day when we will know the exact amount will be October 12. On this day, the Social Security Administration and the United States Government will announce outright what next year’s COLA will be.
If in the end benefits increase by approximately 3%, these will be the approximate maximum amounts:
- Maximum Social Security Age Retirement: $4,691.
- Maximum disability benefit: $3,735.
Also, the average benefit would increase from $1,888 to $1,944 per month. Regardless of what the final figure is, what is important is that retirees will be able to fight inflation thanks to the COLA.
So we can only wait to finally know how much each Social Security check will increase. In the next week we will have all the data and we will be able to calculate what our check will be as of January 2024.