On October 12, the United States government announced the final amount of the COLA for Social Security payments beginning in 2024. However, even though we already know the exact amount of this increase, it does not mean that we will get those extra dollars right away.
We will have to wait until next year to start getting the COLA increase in Social Security payments. Even so, some recipients of a particular SSA benefit will be lucky enough to get an early COLA in 2023.
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If we want to get the early COLA we are going to have to meet a couple of very specific requirements. Otherwise there is nothing to worry about, as the Cost of Living Adjustment will come equally to all Americans with an accepted benefit.
Social Security is very important and so is the COLA, as both elements ensure that the retiree has a monthly income and, furthermore, that that retiree does not lose purchasing power over the years. Fighting inflation is a very difficult and sensitive issue and at least thanks to the Cost of Living Adjustment retirees can cope with it in some way.
If you still don’t know what your benefit will be after the COLA, it’s easy to calculate. With a simple mathematical formula you can find out how much your Social Security check will be in the next year. Do you already know what the COLA figure is?
WHEN WILL THE FIRST SOCIAL SECURITY CHECK ARRIVE WITH THE COLA 2024?
Although it sounds contradictory, the first of the checks sent by Social Security with the COLA 2024 added may arrive in 2023. Only one group of beneficiaries will have access to this early payment, but it is very likely to happen.
Thus, Americans who meet two requirements will have access to this advance payment. These are those two requirements:
- Have an accepted Supplemental Security Income benefit. It is important that it is not in the process of being accepted, but fully accepted.
- Activate Direct Deposit to get Social Security payments.
And nothing else. As a result, the first of the checks with the 2024 COLA will arrive on December 29, 2023. This is because this benefit is actually due on January 1st, but since that day is a holiday, the Administration sends checks to beneficiaries earlier.
The rest of the retirees will get the Social Security money on the days established in the calendar. On January 3rd will be the first retirement payment. The rest will be on the second, third and fourth Wednesday of the month, as usual.
WHAT WILL THE 2024 COLA BE AND HOW MUCH WILL MY BENEFIT INCREASE?
The COLA figure will be 3.2%. This means that each of your Social Security checks will increase by 3.2% over the payment you get through 2023. So if your check is for $1,000, for example, it will go to $1,032. While that may not seem like a big increase, it’s actually a good COLA when you consider the total for the year.
Each and every check sent out by Social Security will have this increase. So Supplemental Security Income payments, disability benefits or otherwise will have 3.2% added starting January 2024.
If the maximum check in 2023 is $4,555, in 2024 it will be $4,700. This maximum check is not for everyone, but only for those who have maximized Social Security during the worker’s time. For disability benefits, the maximum check in 2024 will be $3,743 starting with the first of the January payments.
Remember that these increases will not take effect until January 2024. So even if we already know the exact amount of the COLA we still have to wait a few months to be able to get the benefit with this added amount.