Updated on February 23, 2024
In 2024, Social Security payments are set to increase by 3.2% for nearly 70 million Americans. Starting January 2024, retirees can expect a monthly rise of over $50 on average. The Department of Labor uses the Consumer Price Index (CPI-W) to track living costs, and with inflation on the rise, federal benefit rates are climbing. This uptick in prices for goods and services is partly offset by the Cost of Living Adjustment (COLA). Explore this page for details on the 3.2% Social Security Changes in 2024, along with additional adjustments linked to the national average pay index in effect from January 2024.
2024 Social Security Adjustments: 19.4% Increase
In 2024, the Social Security Administration (SSA) plans to increase the cost of living adjustment (COLA) for benefit checks, responding to ongoing inflation. This is part of a series of recent adjustments by Social Security, eagerly anticipated each year by the 70 million people who rely on it.
While this year’s COLA increase is less than the substantial 8.7% rise in the previous year – the largest in over 40 years – any additional income is welcomed by fixed-income recipients. The goal is to counteract the impact of inflation on buying power, with yearly adjustments ensuring Social Security payouts keep up with the rate of inflation.
Rising Cost of Living Adjustment
According to the latest update from the Social Security Administration (SSA) on changes in 2024, Social Security payment checks are set to increase by 3.2% in the coming year. Starting January 2024, the average retired worker receiving Social Security will see a rise in their payments due to this adjustment, with an anticipated average payout of $1,907 compared to the current $1,848. For couples receiving benefits, the expected joint payout is projected to increase by $94, from $2,939 to $3,033.
Since 1975, the SSA has tied cost-of-living adjustments to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The SSA determines the COLA by comparing the third-quarter CPI-W for the current year with that of the previous year and adjusts it based on the variation in the CPI-W between the two years.