Social Security recipients will receive a 3.2% cost-of-living adjustment (COLA) in 2024, the Social Security Administration announced on Thursday. This is well below the 8.7% COLA that recipients received in 2023, which was the highest increase in over 40 years.
The COLA is an annual adjustment that is made to Social Security benefits to help keep pace with inflation. The COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is a measure of inflation for goods and services purchased by city dwellers.
The lower COLA for 2024 reflects the fact that inflation is expected to moderate in the coming year. The Federal Reserve has been raising interest rates in an effort to bring inflation under control.
The 3.2% COLA will increase the average monthly Social Security benefit for retired workers by $59, to $1,906. The increase will also apply to Supplemental Security Income (SSI) benefits.
The COLA will take effect in January 2024. Recipients will see the increase reflected in their January checks.
The Social Security Administration said that it is committed to ensuring that Social Security benefits keep pace with inflation. The agency said that it will continue to monitor inflation and make adjustments to the COLA as needed.
Impact on Social Security Recipients
The lower COLA for 2024 means that Social Security recipients will see their benefits increase by a smaller amount than they did in 2023. This could make it harder for some recipients to meet their basic needs, especially those who are already struggling financially.
However, it is important to note that the 3.2% COLA is still an increase. It will help Social Security recipients to maintain their purchasing power and keep up with the rising cost of living.
The 3.2% COLA for 2024 is a mixed bag for Social Security recipients. On the one hand, it is lower than the record-setting COLA that recipients received in 2023. On the other hand, it is still an increase that will help recipients to maintain their purchasing power.
Social Security recipients should carefully budget their benefits and seek help from social service agencies if they are struggling financially.