In 2024, more than 71 million Social Security recipients are set to see a significant increase in their benefits. The Social Security Administration (SSA) has announced a 3.2% cost-of-living adjustment (COLA). This change reflects the rising cost of living and aims to provide enhanced financial support to beneficiaries.
This adjustment, based on the Consumer Price Index, will impact those receiving Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), ensuring their benefits keep pace with inflation. Starting in January 2024, this increase marks a crucial step in supporting the financial stability of millions relying on these essential benefits. Read on to learn more about what this means for you from our Greenville Social Security Disability lawyers.
Understanding the 3.2% COLA Increase for Social Security in 2024
The 2024 Social Security increase is a direct response to the rising cost of living, ensuring that Social Security benefits align more closely with current economic conditions. The COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of inflation that tracks changes in the cost of goods and services typically purchased by American households.
This adjustment represents the government’s efforts to boost the purchasing power of Social Security benefits amidst inflationary pressures. The 3.2% increase was carefully calculated to match the rate at which living expenses have risen over the past year. For beneficiaries, this means their monthly checks will see a proportional increase, providing increased financial resources to manage their daily expenses better.
Social Security is a vital source of income for millions of Americans, including retirees, disabled individuals, and other recipients.
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How the 2024 COLA Impacts SSDI and SSI Recipients
The 3.2% COLA increase set for 2024 has significant implications for recipients of SSDI and SSI. This increase will provide essential financial relief to some of the most vulnerable segments of the population.
For SSDI recipients unable to work due to disabilities, the COLA means an increase in their monthly benefits. This adjustment will help them manage the additional expenses often associated with living with a disability, from healthcare costs to specialized services. The increase in benefits will offer more financial flexibility and security.
Similarly, for SSI recipients, who include individuals with limited income and resources, the 2024 COLA presents an opportunity for enhanced financial support. SSI is often a critical lifeline for its beneficiaries, and the increased benefits can help cover necessities like food, clothing, and shelter.
This adjustment is particularly important for those who rely solely on SSI for their livelihood, as it helps to ensure that their benefits do not erode in value over time due to inflation.
How Much Will I Get in My Social Security Check?
This adjustment began with benefits payable to over 66 million Social Security beneficiaries in January 2024, while increased payments to approximately 7.5 million SSI recipients started on December 29, 2023.
The COLA is calculated based on the change in the CPI-W from the third quarter of the previous year, when the last COLA was determined, to the third quarter of the current year.
The specific increase in individual checks depends on factors like earnings history and the age at which you first claimed Social Security. On average, your Social Security check will rise by about $55, with the average check increasing from $1,705.79 in 2023 to $1,760.37 in 2024.
Additionally, the maximum benefit for a retired worker claiming at full retirement age will increase to $3,822 per month in 2024, up from $3,627 per month in 2023, according to the SSA. The average benefit for all retired workers will be $1,907 in 2024, compared to $1,848 in 2023.
To inform recipients of their new benefit amount, Social Security began sending letters in early December. Those who have a mySocialSecurity account can view their COLA notice online.
It’s important to note that recipients needed to have signed up for mySocialSecurity before November 14 to access their COLA notice on the site.
For more specific information about how much the increase will be in individual checks, beneficiaries are advised to check their Social Security account or the mailed COLA notice.
Securing Your Financial Future with the 2024 Social Security Increase
As we move through 2024, the 3.2% cost-of-living adjustment for Social Security recipients marks a significant shift, particularly for those depending on SSDI and SSI. This increase, aimed at matching the rising cost of living, is set to enhance the financial stability of over 71 million Americans.
Understanding and adapting to these changes is helpful for effective financial planning. If you’re facing challenges in applying for benefits or appealing a denial with the help of a Social Security Disability appeals lawyer, remember that you don’t have to handle it alone. Pilzer Klein, with over 50 years of combined experience in the Carolinas, specializes in helping individuals win their disability claims.
Contact us. We offer a free initial consultation, ensuring that you receive expert advice without upfront cost.