How will the 2024 COLA impact the average SSI benefit amount?
Though a smaller increase compared to the one at the beginning of 2023, the COLA adjustment means all benefits will still be increasing for the coming year.
The cost of living adjustment (COLA) increase for 2024 is 3.2%. Government welfare programmes will be increased by this amount for next year. The increase to the COLA is made based on the annual increase in the Consumer Price Index for Salaried Workers in Urban Areas and Administrative Workers (CPI-W).
To determine this, the SSA compares the CPI-W for the third quarter of the year - July, August and September - to the CPI-W for the third quarter of the current year. The difference between one and the other will be the equivalent of the increase in COLA.
How much will your payments increase?
With the 3.2% increase, the average payment of a retired worker for 2024 will increase by approximately $57, which leaves the checks for next year at an average of $1,885 per month.
This is only an approximate amount, which means that the exact number varies depending on the personal situation of each beneficiary. Here is a simple formula with which you can calculate the increase in your payments for 2024: multiply the figure of your current benefits by 1.032.
The maximum monthly SSI payments this year are $914 for an individual and $1,371 for a married couple where both spouses are eligible for the program. For next year the amounts would be $943 and $1,414.80, respectively.
You can do a calculation by taking the monthly benefit you’re getting today and multiplying by 1.032.
When will this increase take effect and when will recpients know for certain the changes?
According to the official statement, Social Security began notifying people of their new benefit amounts by mail starting in early December.
The increase in payments applies to the more than 71 million Social Security beneficiaries and will be reflected automatically starting from the first checks of 2024.