In October, the Social Security Administration announced a 3.2% annual cost-of-living adjustment for 2024. This will result in an average increase of over $50 per month in Social Security benefits starting in January for millions of people. While the 2024 growth is less than the previous year’s highest since 1981 (8.7%), it doesn’t necessarily signal unstable inflation. Instead, it may help the Social Security Administration sustain payments for seniors, low-income individuals, and those on fixed incomes for a longer period, as the COLA serves as an inflation measure. However, with recent COLA volatility, concerns about the stability of the 2024 Social Security payments system among future retirees are understandable.
2024 SSI Boost: What to Expect
Federal funds support the Supplemental Security Income (SSI) program, offering payments to individuals aged 65 or older, disabled, or blind with low incomes. In 2024, the Social Security Administration will increase monthly SSI payments by 3.2%, a significant decrease from the previous year’s 8.7%. This adjustment is based on the Consumer Price Index (CPI) growth for the 12 months ending in September 2023. The maximum income subject to Social Security taxes for those contributing through work is rising to $168,600, resulting in a 5% increase in Social Security taxes. These benefits have been subject to yearly cost-of-living adjustments (COLAs) since 1975, initially enacted by Congress in the 1972 Social Security Amendments. Claimants currently receive their benefits in January for payments due in December.
SSI Increase 2024: Comprehensive Information
| Post Title | SSI Increase 2024 |
| Benefit Name | Supplemental Security Income |
| Nodal Agency | Social Security Administration |
| Country | United States of America |
| Category | Government Aid |
| Expected Increase in 2024 | 3.2% |
| Adjustment Basis | COLA |
| Official Website | ssa.gov |
Projected Rise in SSI for Elderly, Low-Income, and Fixed-Income Individuals
In 2024, the Social Security benefit boost is set to be smaller at 3.2%, compared to the significant increase this year. This adjustment reflects a decrease in consumer prices. As per the Social Security Administration, the average beneficiary can expect over $50 extra per month starting January, thanks to the cost-of-living adjustment (COLA). Experts have calculated this increase to be $59 per month. Approximately 71 million individuals, including children, retirees, and those with disabilities, receive Social Security payments in 2024. While last year saw an 8.7% COLA increase, the 3.2% COLA in 2024 will provide a modest rise in Social Security and SSI benefits.
Latest Update: SSI COLA Increase for 2024
In early December, Social Security began notifying beneficiaries through letters, and those with my Social Security accounts on ssa.gov can check their COLA notification online. If individuals didn’t register on my Social Security before November 14th, they won’t be able to view their online COLA notification. The Social Security Administration (SSA) announced an increase in Social Security and Supplemental Security Income (SSI) payouts for 2024 due to the cost-of-living adjustment (COLA).
According to the SSA, COLA ensures that Social Security and SSI benefits keep up with inflation to maintain their purchasing power. The calculation involves the percentage rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) between the third quarters of the previous and current years. If there’s no increase in inflation, there won’t be a COLA rise.
When Will Increased Social Security Payments Arrive?
The January 2024 SSI payment, including the COLA, will be sent out starting Friday, December 29, 2023, since January 1st is a holiday. Subsequent payments will be dispatched every Wednesday based on recipients’ dates of birth:
- Those receiving benefits before May 1997 will receive payments on Wednesday, January 3, 2024.
- Payments for individuals born between January 1st and January 10th, 2024, will be on a Wednesday.
- Individuals born on the 11th and 20th of January will receive payments on Wednesday, January 17, 2024.
- Payments for those born between January 21 and January 31 will be sent on Wednesday, January 24, 2024.
