As per the Social Security Increase 2024 Latest Update, more than 71 million people will get higher Social Security and SSI payments in 2024, according to the SSA. On October 12, 2023, the news of the higher Social Security benefits was shared. This implies that each claimant will get an average monthly increase of USD 50 in Social Security Increase 2024 Payments from the Social Security Administration.
December 2023 will see no implementation of the Increase in the Social Security Amount 2024. Beginning in January 2024, Social Security benefits will be raised. Therefore, starting in January 2024, people who receive Social Security benefits will be eligible to receive higher monthly payments.
Social Security Increase 2024
For the majority of Americans in retirement, Social Security is a vital source of income. As much as 90% of retired workers depend on their monthly Social Security payment to cover at least some of their costs, according to annual surveys by a company.
Considering the importance of Social Security payments to the financial security of tens of millions of seniors, the annual cost-of-living adjustment (COLA), issued in the second week of October, is the most anticipated event Just over a month ago, the Social Security Administration confirmed a 3.2% increase in retirement benefits the cost-of-living adjustment, or COLA for 2024. The 3.2% COLA rise in 2024 is much less than the 8.7% boost beneficiaries received in 2023, even though it is still one of the biggest increases in decades.
Social Security benefits increasing 3.2% in 2024
Beginning in January 2024, retirement and disability payments will increase by 3.2% and more than USD 50 per month on average. Compared to the previous two years, there has been a significant decrease in the cost of living adjustment that impacts over 71 million people who receive Social Security retirement and disability payments.
According to information released by the Social Security Administration, the Social Security cost-of-living adjustment for 2024 will be 3.2% as opposed to 8.7% in 2023. For the receivers, this means a rise of almost USD 60 per month on average. Amidst increasing inflation, Social Security beneficiaries earned their biggest COLA in over 40 years in 2023. Over the previous 20 years, the COLA has averaged 2.6%.
Why Social Security is important for Americans?
For senior citizens in USA, Social Security is of great important as it helps them a lot. According to experts, it makes up around one-third of the average retiree’s overall income. Furthermore, the Social Security Administration found that around 25% of senior families depend on Social Security payments for at least 90% of their family income, and that almost half of the senior population lives in homes where Social Security provides at least 50% of the family income.
What do COLA rises aim to achieve?
In the face of growing inflation, Social Security and Supplemental Security Income (SSI) beneficiaries are intended to benefit from the Social Security Administration’s yearly cost-of-living adjustments.
Every year, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) of the Bureau of Labor is used to calculate these increases. The CPI-W measures changes in the prices of typical consumer goods and services.
When will the Social Security Increase Payment 2024 checks be issued?
The recipient’s birthdate determines when Social Security checks are issued: checks for those born between January 1 and October 8th, May 15th for those born between November 11 and 20th, and June 22nd for those born between October 21 and December 31st. For beneficiaries of Supplemental Security Income (SSI), checks are typically received on May 1st; for those who started receiving benefits before May 1997, checks are paid on May 3rd.
Will taxes increase?
The FICA, a payroll tax, provides the funding for Medicare and Social Security. Certain Americans with higher salaries will pay more taxes since the maximum wages due to FICA will rise from USD 160,200 in 2023 to USD 168,600.
Check your mail Now
Early in December, the SSA had announced, that it will start mailing beneficiaries notices of the Social Security Increase Payment 2024. Now, anyone with personal My Social Security accounts can register for text or email notifications for new communications about COLA and access their COLA notice online, according to the government.
According to the SSA, www.medicare.gov will provide details on Medicare’s 2024 reforms. Preliminary estimates of the 2024 COLA based on the increase in consumer pricing data through August were made by the Senior Citizens League, one of the biggest nonpartisan seniors organizations in the country.
Estimated AM Social Security Benefits Payable in January 2024
|Before 3.2% COLA
|After 3.2% COLA
|Married couple, both receiving benefits
|SB, older spouse
|SB, widowed parent and two qualifying children
|Worker receiving DB
|SSI MFB, individual
|SSI MFB, married couple