$60 Monthly Boost: Social Security 2024 Cost of Living Adjustment

Anticipated $60 Monthly Boost

$60 Monthly Boost: Social Security 2024 Cost of Living Adjustment. In the year 2024, Social Security retirement beneficiaries can expect a substantial increase of nearly $60 per month in their benefit payments. This noteworthy change is a result of the annual Cost of Living Adjustment (COLA), promising higher monthly payouts.

Estimated COLA for 2024

While the official COLA figure for 2024 has yet to be confirmed, preliminary estimates point to a 3.2% increase in Social Security benefits for the upcoming year. This projected adjustment, though lower than the 8.7% experienced in 2023, is still influenced by the unexpected surge in consumer price data in August.

COLA Calculation Months

Understanding how Social Security calculates the new COLA is essential. They base it on the average inflation rate during the months of September, August, and July. This method ensures that beneficiaries do not lose their purchasing power over time.

Utilizing the CPI-W Index

In the recent update on the forthcoming COLA, authorities rely on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index compares figures from the third quarter of the current year with those of the same period from the prior year, providing a key basis for determining the COLA.

Projected Benefits Increase

Approximately 70 million beneficiaries will receive increased Social Security payments in 2024. While the median retirement benefit currently stands at around $1,827, actual disbursements will vary both below and above this average. For those receiving the average benefit, a tentative increment of just under $60 per month is expected, resulting in an estimated monthly benefit of about $1,885 starting in January 2024. These figures, however, should be regarded as approximate.

Awaiting Official Confirmation

It’s important to note that the official data from the Bureau of Labor Statistics is still pending. Beneficiaries are advised to await the final announcement of the new COLA, which is anticipated to be released in October. A word of caution: individuals relying on Supplemental Security Income may see a more modest increase in their benefits.