Social Security Payment Boost in 2024: Are You Eligible for an Increase?

Updated on February 23, 2024

The latest update on Social Security Increase 2024 reveals that over 71 million individuals will experience a boost in Social Security and SSI payments, as announced by the SSA. On October 12, 2023, news of the increased benefits surfaced, indicating an average monthly increment of $50 for each claimant in the Social Security Increase 2024 Payments from the Social Security Administration.

No adjustments in the Social Security Amount 2024 will be implemented in December 2023. However, come January 2024, Social Security benefits are set to increase, allowing recipients to enjoy higher monthly payments starting from that month.

Social Security 2024 Raise

For many retired Americans, Social Security serves as a crucial income source, with up to 90% relying on it for covering various expenses, as indicated by annual surveys. The eagerly awaited annual cost-of-living adjustment (COLA), announced in the second week of October, holds significant importance for the financial well-being of millions of seniors.

A little over a month ago, the Social Security Administration confirmed a 3.2% increase in retirement benefits through the cost-of-living adjustment (COLA) for 2024. While the 3.2% rise is notably lower than the 8.7% increase in 2023, it still stands as one of the substantial increases in recent decades, underscoring its significance for beneficiaries.

See also  Australian Aged Pensioners: Rent Assistance Guide

Social Security Benefits to Rise by 3.2% in 2024

Starting in January 2024, retirement and disability payments will see an increase of 3.2%, translating to an average monthly rise of over USD 50. This signifies a substantial drop in the cost of living adjustment compared to the preceding two years, impacting more than 71 million individuals receiving Social Security retirement and disability payments.

As per information from the Social Security Administration, the cost-of-living adjustment for 2024 is set at 3.2%, contrasting with the 8.7% recorded in 2023. Recipients can anticipate an average monthly increase of nearly USD 60. Despite the challenges posed by increasing inflation, Social Security beneficiaries experienced their most significant COLA in over 40 years in 2023. Over the past two decades, the COLA has averaged 2.6%.

The Significance of Social Security for Americans

Social Security holds immense importance for senior citizens in the USA, serving as a crucial support system. Experts note that it constitutes approximately one-third of the average retiree’s total income. Additionally, findings from the Social Security Administration reveal that around 25% of senior families rely on Social Security payments for at least 90% of their family income. Moreover, nearly half of the senior population resides in households where Social Security contributes at least 50% of the family income.

 

Purpose of COLA Increases

As inflation continues to rise, Social Security and Supplemental Security Income (SSI) recipients are expected to receive annual adjustments to account for the cost of living. These adjustments are calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the Bureau of Labor. The CPI-W reflects changes in the prices of everyday goods and services.

See also  2024 Guaranteed Income Supplement in Canada: Eligibility and Support

2024 Social Security Payment Increase: When to Expect Your Checks

The issuance of Social Security checks is based on the recipient’s birthdate. If born between January 1 and October 8, checks are sent out earlier, on May 15. For those born between November 11 and 20, checks are issued on May 15, and for those born between October 21 and December 31, checks are distributed on June 22. Supplemental Security Income (SSI) beneficiaries usually receive their checks on May 1, while those who began receiving benefits before May 1997 can expect their checks on May 3.

Anticipating Tax Increases

The FICA, a payroll tax supporting Medicare and Social Security, will see increased taxes for some higher-income individuals. This is because the maximum wages subject to FICA will increase from USD 160,200 in 2023 to USD 168,600.

Please Review Your Email

In early December, the SSA announced the commencement of mailing notices regarding the Social Security Increase Payment for 2024 to beneficiaries. Individuals can now opt for text or email notifications through their personal My Social Security accounts to receive updates on COLA. The government encourages beneficiaries to access their COLA notice online.

For detailed information on Medicare’s 2024 reforms, the SSA advises checking www.medicare.gov. The Senior Citizens League, one of the largest nonpartisan seniors organizations in the country, has provided preliminary estimates of the 2024 COLA based on consumer pricing data until August.

Projected Social Security Benefits for January 2024

Here are the estimated Social Security benefits before and after a 3.2% Cost of Living Adjustment (COLA) for various beneficiaries:

  • Retired worker:
    • Before 3.2% COLA: USD 1,848
    • After 3.2% COLA: USD 1,907
  • Married couple, both receiving benefits:
    • Before 3.2% COLA: USD 2,939
    • After 3.2% COLA: USD 3,033
  • SB (Survivor Benefit), older spouse:
    • Before 3.2% COLA: USD 1,718
    • After 3.2% COLA: USD 1,773
  • SB, widowed parent and two qualifying children:
    • Before 3.2% COLA: USD 3,540
    • After 3.2% COLA: USD 3,653
  • Worker receiving DB (Dependent Benefit):
    • Before 3.2% COLA: USD 1,489
    • After 3.2% COLA: USD 1,537
  • SSI MFB (Supplemental Security Income Federal Benefit), individual:
    • Before 3.2% COLA: USD 914
    • After 3.2% COLA: USD 943
  • SSI MFB, married couple:
    • Before 3.2% COLA: USD 1,371
    • After 3.2% COLA: USD 1,415
See also  Discover Maternity Benefits in Ireland: Payment Day, Amount, Eligibility, and Exciting Updates!

 

Leave a Comment