In a recent announcement, the Social Security Administration revealed that Social Security and Supplemental Security Income benefits will increase by 3.2% in 2024, benefiting over 71 million Americans.
This significant boost comes as a welcome relief for individuals relying on these financial lifelines.
A financial uplift for millions
Starting in January 2024, Social Security retirement benefits will increase by more than $50 per month. This uplift will impact the lives of over 66 million Social Security beneficiaries, who will experience the 3.2% cost-of-living adjustment.
For approximately 7.5 million people receiving SSI, the increased payments will begin on December 29, 2023. People who receive both a Social Security check and SSI benefits will see increases in both amounts.
Apart from the increase in benefits, tax adjustments are also set to take effect in January. The new amount that people can earn before having to pay Social Security tax will increase from $160,200 to $168,600.
Those who had set up an account by November 14, 2023 can now view the COLA notice online. Otherwise, Social Security will notify individuals by mail about their new benefits.
Legal basis of changes
The Social Security Act ties the COLA to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers, as determined by the Department of Labor’s Bureau of Labor Statistics. This annual change aims to keep pace with the changing cost of living, ensuring that Social Security and SSI benefits continue to provide support to millions of Americans.
Social Security beneficiaries also enrolled in Medicare will also receive details about their new 2024 benefit amount through the mailed COLA notice and their online Social Security message center.