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Social Security COLA 2024 What It Means for Your Monthly Income

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Social Security COLA 2024 What It Means for Your Monthly Income

Social Security COLA 2024 What It Means for Your Monthly Income. In this article, we’ll delve into the anticipated boost in Social Security payouts for 2024 and understand the significance of the Cost-of-Living Adjustment (COLA).

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Inflation Impact on Social Security Beneficiaries

Inflation affects individuals of all demographics and income levels, but it holds particular concern for Social Security recipients. The Social Security Administration (SSA) employs a strategy to safeguard beneficiaries’ purchasing power, as higher inflation translates to increased living costs for American families.

Expected Surge in Social Security Payments 2024

As we approach 2024, Social Security beneficiaries can anticipate a significant increase in their monthly allocations. Recent inflation data from August points to a projected 3.2% rise in the Cost-of-Living Adjustment (COLA), as reported by the Senior Citizens League. Let’s take a closer look at what the Social Security COLA entails.

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Understanding the Social Security COLA

The Social Security Cost-of-Living Adjustment (COLA) is an annual adjustment designed to protect the purchasing power of millions of Americans who rely on Social Security benefits. It hinges on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the previous year to the third quarter of the current year.

Impact of the 2024 COLA on Social Security Payments

The projected 3.2% COLA for 2024 is expected to result in the following adjustments to Social Security payments:

  • Retirees: An increase of $58, bringing the average check to $1,885.
  • Workers with disabilities: A boost of $47, resulting in an average payment of $1,530.
  • Senior couples both receiving benefits: An increase of $95, with an average payment of $3,067.
  • Widows or widowers: An increment of $55, leading to an average payment of $1,759.
  • Widows or widowers with two dependents: An increase of $113, reaching an average payment of $3,633.
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When to Expect the COLA Increase in Your Payments

Beneficiaries can expect to see this COLA adjustment reflected in their January 2024 statements, with payment dates varying based on birthdates and Social Security commencement:

  • Birthdays from the 1st-10th: Payments on the second Wednesday of January.
  • Birthdays from the 11th-20th: Payments on the third Wednesday.
  • Birthdays from the 21st-31st: Payments on the fourth Wednesday.
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Conclusion

Supplemental Security Income beneficiaries will receive their increase at the beginning of the month, adjusted for holidays and weekends. Those who began receiving benefits before May 1997 should mark January 3rd, 2024, on their calendars for this important update. For additional guidance on Social Security benefits, including SSDI and SSI applications, refer to the informative resources available.

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