SOCIAL SECURITY
Will there be a record increase in Social Security COLA payments? When will it be confirmed?
The Social Security Adminstration is preparing to announce the COLA for 2024. What do we know so far about how much benefits could increase?
The Social Security Administration (SSA) issues millions of payments each month to beneficiaries of the programs under its control.
These include retired workers who receive Social Security, people with disabilities who receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), and their eligible family members.
Social Security payments are determined based on several factors, such as years of work, Social Security taxes paid, and the beneficiary’s retirement age. On average, retired workers receive $1,907 for individuals and $3,303 for couples filing jointly. SSI recipients get an average of $943 monthly for individuals and $1,415 for couples. These amounts are adjusted annually to account for inflation, and the increase in 2024 was 3.2%.
Will there be a record increase in Social Security COLA payments?
The Cost of Living Adjustment (COLA) increase is calculated based on the annual increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The Social Security Administration (SSA) compares the CPI-W for the third quarter of the previous year to the third quarter of the current year to determine the difference, which then equates to the COLA increase. The increase is then tacked onto benefits each year in January. The third quarter is made up of July, August, and September, and today, the Bureau of Labor Statistics reported that prices fell 0.1 percent in July. With prices falling, the COLA is likely to be far less than what was offered this year.
The Senior Citizens League, a nonpartisan advocacy group for senior citizens, has projected the COLA increase for 2025 based on current inflation trends. They anticipate the COLA increase for next year to be 2.63%.
When will the COLA increase be confirmed?
Typically, the Social Security Administration announces the COLA increase during the second week of October, so there are still a couple of months to go before we find out the increase for next year.