Cost of Living Adjustment (COLA) 2024 Brings Positive News for Pensioners and Disability Beneficiaries
In a welcomed development for Social Security beneficiaries across the United States, the year 2024 is poised to bring an increase in their benefits. This boost, set to take effect in January, is attributed to the Cost of Living Adjustment (COLA) announced by the government in October of the preceding year.
Universal Impact of COLA 2024
Every Social Security beneficiary, including those with disabilities, the elderly, and widowed individuals, is set to experience an uptick in their benefits come 2024. While opinions on the magnitude of the COLA increase may differ, the consensus remains that any rise in benefits is a positive development. The prospect of larger Social Security checks is cause for celebration, even if it is deemed a modest victory by some.
Timing of the Increase
The scheduled increase will come into effect with the commencement of January 2024. Notably, Social Security checks for the month of December will not incorporate the COLA, and the remaining payments in November 2023 will also remain unaffected by the increase.
For some beneficiaries, an early taste of the increase may be possible in December 2023, contingent upon meeting specific requirements. Individuals eager to benefit from this early increase should familiarize themselves with the necessary criteria. Are you aware of the potential increase in your Social Security check with the 2024 COLA?
Calculating the Increase
The extent of the increase in Social Security benefits for 2024 varies for each recipient based on their current figures. The COLA operates on a percentage basis, and for 2024, this percentage stands at 3.2% across all checks.
To calculate the anticipated increase for the upcoming year, individuals need only add 3.2% to their current benefit amount. For every $100 received in the 2023 check, it will become $103.2 in 2024. For instance, the maximum Supplemental Security Income (SSI) payment, currently $4,555 in 2023, will rise to $4,700 starting in January 2024. Similarly, the highest disability check, currently $3,627, will increase to $3,743 in 2024 benefits.
Early Arrivals and Considerations
The initial payments reflecting the COLA increase are expected on December 29th, constituting the January 2024 Supplemental Security Income. This advance is due to the 1st being a holiday, the usual payment day. Direct Deposit recipients can anticipate immediate access to these funds, enabling them to enjoy the Social Security COLA sooner.
Evaluating the Adequacy of COLA 2024
Despite the positive news, concerns linger among thousands of Americans who question the sufficiency of the 3.2% increase, particularly in the face of rising inflation. The October announcement of the COLA figure prompts skepticism about its ability to effectively cover the escalating costs of living.
This apprehension is particularly pronounced among retirees reliant solely on Social Security for income, as inflation may impact them more significantly. While opinions vary, the fixed COLA figure for 2024 remains unalterable, necessitating beneficiaries to navigate the year ahead with a 3.2% increase until the announcement of the new COLA for 2025 in late 2024.
