This week the Social Security Administration announced COLA 2024. People receiving Social Security benefits will see a 3.2% increase in 2024. Although the 3.2% increase is smaller than the COLA increase starting in 2023 , will help people who rely on benefits pay the higher costs of essentials like food and housing. and public services.
The Social Security Administration’s 2024 COLA is an increase in the amount of benefits awarded to keep pace with inflation and higher costs of living. The cost of living adjustment, or COLA, is based on data from the Consumer Price Index, or CPI-W, which tracks increases in the prices of goods and services. The SSA has announced that the COLA for 2024 is 3.2%.
In 2023, the COLA was the largest increase in SSA history, so this year’s 3.2% increase may seem very low compared to that. But the average COLA in the past has been around 2%, so the 3.2% increase is still above average.
| 2023 | 2024 | |
|
non-blind SGA |
$1,470/month. |
$1,550/month. |
|
blind SGA |
$2,460/month. |
$2,590/month |
|
Trial work period |
$1,050/month. |
$1,110/month. |
|
Max. Benefit at retirement age |
$3,627/month |
$3,822/month |
|
SSI Standard Payment: Individual |
$914/month |
$943/month |
|
Standard SSI Payment: Couple |
$1,371/month |
$1,415/month |
| Average monthly payments | Before 3.2% COLA | After 3.2% COLA |
|
All retired workers |
$1,848 |
$1,907 |
|
Widowed mother and two children |
$3,540 |
$3,653 |
|
Alone elderly widow |
$1,718 |
$1,773 |
|
Disabled worker and child |
$2,636 |
$2,720 |
|
All disabled workers |
$1,489 |
$1,537 |
In 2023, the COLA announced by the SSA was a whopping 8.7%, the largest increase ever recorded. But that increase was largely due to record inflation following the Covid-19 pandemic. Now that inflation has slowed, a smaller COLA was expected in 2024 to match the slower rise in consumer prices.
Experts are quick to point out that the average COLA in recent years is around 2%, so the Social Security COLA for 2024 is still higher than usual. The COLA increases for the last five years were:
- 2023: 3.2%
- 2022: 8.7%
- 2021: 5.9%
- 2020: 1.3%
- 2019: 1.6%
The 3.2% COLA for 2024 will increase the monthly amount of benefits people get by about $57.
If you want to know what your new payment will be and how much increase you will see in your Social Security benefits, you can check your MySocialSecurity account online to see the updated payment amount starting in 2024. The Social Security Administration will also mail you an explanation updated benefit plan that will indicate your increase and your new payment amount. The new payment amount will begin in January 2024.
If you want to know what your new payment will be and how much increase you will see in your Social Security benefits, you can check your MySocialSecurity account online to see the updated payment amount starting in 2024. The Social Security Administration will also mail you an explanation updated benefit plan that will indicate your increase and your new payment amount. The new payment amount will begin in January 2024.
There are other changes to the way Social Security benefits are calculated that may affect people who are not already receiving benefits, including:
Change in taxable income
The amount of money you can earn that will be considered taxable income for purposes of Social Security benefits has increased from $160,200 to $168,600 in the SSA’s 2024 COLA update.
SGA change
The amount of money you can earn while still receiving benefits will also change in 2024. The monthly amount blind people can earn without affecting their benefits in 2024 is $2,590. For non-blind people, the maximum amount of money they can earn each month is $1,550.
Work credit change
Another change announced by the SSA is that the value of a work credit will increase starting in 2024. The value of an earned work credit will increase from $1,510 to $1,640.
