COLA Update 2024 : Next Year Social Security Increase Dates

COLA Update 2024 : Next Year Social Security Increase Dates.One of the most anticipated times for retirees in the United States is the annual Cost of Living Adjustment (COLA) announcement. Each year, the Social Security Administration increases the retirement and Supplemental Security Income checks based on this adjustment, making it an essential event for retirees.

COLA Update 2024 : Next Year Social Security Increase Dates

Understanding the key dates associated with the COLA can help retirees get an approximate idea of the increase in Social Security checks for the upcoming year.

CPI-W Increase in Specific Months:

The COLA increase in Social Security checks is determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). To calculate the final check amount, the government considers the inflation and CPI-W increase for the months of July, August, and September. Keeping track of general price increases during these months can provide retirees with an approximate estimation of the upcoming COLA increase. However, it’s important to note that any projected amount is merely indicative until the official announcement.

Official Announcement of COLA 2024:

The official announcement of the 2024 COLA is expected in October 2023. During the middle of that month, retirees will learn the exact percentage of the COLA increase. Last year’s increase was 8.7%, but this year’s figure may vary, possibly decreasing to 3%, depending on economic factors and inflation rates.

First Check with the New COLA:

The first Social Security check reflecting the 2024 COLA will be issued in January, specifically the Supplemental Security Income payment. However, it’s essential to understand the timing irregularity associated with this payment. As January 1st is a holiday, the payment is sent earlier, meaning the first check with the COLA already applied will arrive in 2023. Nevertheless, for all practical purposes, it will be considered a 2024 calendar year payment.

Conclusion:

Knowing these important dates can help retirees gain insights into the forthcoming COLA increase. While an approximation can be derived by monitoring inflation and the CPI-W increase, the official announcement in October 2023 will provide the exact percentage. By staying informed, retirees can better plan their finances and prepare for any adjustments in their Social Security checks for the year ahead.