Social Security COLA: When will I be able to see my cost of living adjustment for 2024?
The 2024 cost of living adjustment has been announced, and it has yet to come into effect. When will the increase be reflected in Social Security payments?
Last month, the Social Security Administration released the cost of living adjustment (COLA) for next year. The adjustment is implemented to counteract the effects of inflation and changes in the cost of living over time.
Each year, the SSA calculates the cost of living adjustment in order make sure the purchasing power of its beneficiaries will not be adversely affected by higher prices. If there has been an increase in inflation, the administration also increases Social Security payments.
Payments administered by the SSA that are affected by COLA include Social Security benefits (retired workers and survivors), Social Security Disability Insurance (SSDI)) and the SSA program called Supplemental Security Income (SSI).
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How does SSA calculate COLA?
The COLA is calculated based on data from the Consumer Price Index for Urban Wage Workers and Clerical Workers (CPI-W).
The calculation takes into account the CPI-W data from the third quarter of the previous year and compares them with those from the third quarter of the current year; that is, the data from July, August and September of both years are compared.
According to calculations made by the Social Security Administration. the 2024 COLA will be 3.2%, so Social Security and SSI benefits will increase by that same percentage. When will the adjusted payments come into force?
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Social Security COLA: When will I be able to see my cost of living adjustment for 2024?
The cost of living adjustment for 2024 has been announced, but it has yet to come into effect. Beneficiaries must wait until the date they receive their payment in January of next year to see their first adjusted payment, except for a few who will receive theirs next month.
Supplemental Security Income recipients generally receive their payments on the first day of the month. However, if the day falls on a Saturday, Sunday or holiday, your shipment will be brought forward.
Because Monday, January 1 is a holiday, the first increased SSI payment is brought forward and sent beginning December 29, 2023.
The rest of the beneficiaries will receive their first increased payment on the following dates:
- Wednesday, January 3: Beneficiaries who began receiving their payments before May 1997
- Wednesday the 10th: Beneficiaries with a date of birth from the 1st to the 10th
- Wednesday the 17th: Beneficiaries with a date of birth from the 11th to the 20th
- Wednesday the 24th: Beneficiaries with a date of birth from the 21st to the 31st