Social Security recipients are likely to receive an increase in 2024. As we approach the end of the year, Social Security recipients have reason to anticipate a positive change in their benefits for the upcoming year. According to the Social Security Administration’s December 2023 newsletter, there is good news on the horizon.
Average Increase in Social Security Benefits
In 2024, Social Security benefits and Supplemental Security Income (SSI) payments are set to increase by an average of 3.2%. This translates to an approximate monthly boost of $50 for the 71 million Americans who rely on these benefits.
Statement from the Acting Commissioner
Kilolo Kijakazi, the Acting Commissioner of Social Security, expressed optimism about the impact of this increase. In a news release, Kijakazi stated, “Social Security and SSI benefits will increase in 2024, and this will help millions of people keep up with expenses.”
Basis for Increase | Cost-of-Living Adjustment (COLA)
The federal benefit rates are subject to adjustment based on changes in the cost of living. This adjustment is determined by the Consumer Price Index (CPI) from the Department of Labor. As inflation increases, leading to a higher cost of living, Social Security benefits are adjusted accordingly.
Notification Process for Recipients
The Social Security Administration plans to inform recipients about the Cost-of-Living Adjustment (COLA) through mailed notices in December. Recipients, including those receiving retirement, survivors, and disability benefits, SSI recipients, and representative payees, will receive these notices.
However, individuals eager to know their new benefit amounts sooner can access their COLA notices online through the Message Center in their personal my Social Security accounts.
Additional Changes in January 2024
Beyond the increase in benefits, January 2024 will bring other changes tied to the national average wage index. Notably, the maximum amount of earnings subject to Social Security payroll tax will rise in 2024. Additionally, the retirement earnings test exempt amount will undergo a change in the same year.
Conclusion
The anticipated increase in Social Security benefits in 2024 is a positive development for millions of recipients, helping them better manage their living expenses. Recipients are encouraged to check their COLA notices online for early access to this information.
