In a matter of days, U.S. retirees will be tuned into a pivotal announcement that annually marks a significant impact on their financial futures: the Cost of Living Adjustment (COLA) increase for Social Security in 2024.
The announcement, a beacon of financial anticipation for many, not only signifies an extra influx of dollars for American retirees but also symbolizes an enhancement in their quality of life by boosting their monthly income.
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WHEN WILL BE THE DATE OF THE SOCIAL SECURITY COLA ANNOUNCEMENT?
The Social Security Administration, in tandem with the U.S. government, has earmarked October 12, 2023, at 8:30 a.m. as the moment of revelation for the COLA percentage hike, a detail that has beneficiaries on the edge of their seats. This announcement sets the stage for beneficiaries to witness a welcome swell in their monthly checks, providing a subtle yet crucial lift to their financial stability and purchasing power, month after month.
The COLA, a percentage increase, ensures that each citizen experiences a proportional boost to the benefits they currently receive. For instance, if the COLA is set at 3%, a figure speculated by various quarters, an American with a Social Security benefit of $4,555 would see their check increase to approximately $4,691 per month, marking a substantial payment that could significantly benefit retirees.
THE FIRST CHECK WITH THE 2024 COLA ARRIVING IN 2023
Although the new COLA will officially elevate Social Security checks for payments commencing in 2024, beneficiaries will see the first payment with the increase arrive slightly ahead of schedule. This early payment, the January 2024 Supplemental Security Income, is scheduled to occur due to the Social Security Administration’s policy of not sending payments on weekends or holidays. Given that the SSI payment typically lands on the 1st of each month and January 1 is a holiday, the administration will dispatch the check on the immediately preceding business day, i.e., December 29, 2023.
This early arrival of funds, especially for those utilizing Direct Deposit as their collection method, provides recipients with a financially buoyant start to the year, enabling them to ring in New Year’s Day with a hearty celebration. However, it’s imperative for beneficiaries to manage their funds wisely throughout January, as they will navigate several additional days without receiving a payment.