Social Security beneficiaries can expect a substantial boost to their payments in 2024, thanks to rising inflation. According to the Senior Citizens League, the most recent inflation data from August suggests that the Cost-of-Living Adjustment (COLA) for Social Security will be 3.2%. Annually, the Social Security Administration (SSA) determines the COLA for Social Security payments by considering the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers from the third quarter of the previous year to the third quarter of the current year.
Given the consistent annual CPI increases, a COLA-driven payment increase is expected, as has been the case since 2022. The precise amount of the 2024 Social Security COLA will be officially disclosed on October 12th, coinciding with the release of the final inflation figures for the third quarter of 2023. We will provide you with an estimate of the expected increase in your Social Security payments for the upcoming year.
What Will Be the Impact of the 2024 COLA Increase on My Social Security Payment?
Additionally, you can find detailed information on the Social Security payment schedule and the payment schedule for Social Security Disability Insurance by referring to the following resources. The expected COLA increase stands at 3.2%, and based on recipient groups, here are the anticipated average payment adjustments for 2024:
- Retiree: An average monthly increase of $58, resulting in an average 2024 check amount of $1,885.
- Worker with disabilities: An average monthly increase of $47, leading to an average 2024 payment of $1,530.
- Senior couple, both receiving benefits: An expected monthly increase of $95, resulting in an average 2024 combined payment of $3,067.
- Widow(er): An average monthly increase of $55, leading to an average 2024 payment of $1,759.
- Widow(er) with two children: Anticipated to receive an average monthly increase of $113, resulting in an average 2024 payment of $3,633.
Please note that the exact COLA figure for 2024 will be officially determined by the Social Security Administration in mid-October, based on inflation data between the third quarter of 2022 and the third quarter of 2023.
Your Increased Social Security Payments from January 2024
Beginning in January 2024, you will start noticing the COLA increase in your monthly Social Security checks. The exact timing of this increase depends on your birth date and when you initially began receiving Social Security benefits:
- If your birthday falls within the first to the 10th of the month, your payment will be dispatched on the second Wednesday of January 2024.
- For individuals with birthdays between the 11th and 20th of the month, your payment will be sent out on the third Wednesday of January 2024.
- If your birthday falls within the 21st to the 31st of the month, your payment will be issued on the fourth Wednesday of January 2024.
Supplemental Security Income recipients generally receive their payments on the first day of each month, unless it coincides with a holiday or weekend. However, if you began receiving Social Security benefits before May 1997, your payment should arrive on January 3, 2024.
SSI, Veterans Affairs, Medicare Premiums, SNAP and Other Payments to Raise
While Social Security retirement benefits are one of the most widely recognized programs influenced by COLA, numerous other federal benefits and programs are also impacted. First, the Supplemental Security Income (SSI), a program for low-income elderly, blind, or disabled individuals, are recalibrated annually in line with the COLA increase.
Veterans receiving disability compensation, pension benefits, or survivor benefits from the Department of Veterans Affairs (VA) likewise witness adjustments in their payments due to the COLA increase. Similar to Social Security, the Railroad Retirement Board makes adjustments to benefits for retired railroad workers and their survivors based on the COLA increase.
Federal retirees, including those under the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS), receive annual COLA adjustments to their pension payments. Furthermore, retired members of the armed forces, spanning the Army, Navy, Air Force, Marines, and Coast Guard, also experience COLA adjustments to their retirement pay.
While not a direct benefit increase, the COLA can influence the Medicare premiums paid by beneficiaries. With a COLA increase, some individuals may notice a rise in their Medicare Part B premiums. The COLA increase can also impact eligibility and benefit levels for programs such as the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, as well as various state-based assistance programs.