Social Security Increase Arriving Sooner than Expected

Social Security Increase Arriving Sooner than Expected. The upcoming Social Security increase is poised to reach Americans’ pockets earlier than anticipated. While the Cost of Living Adjustment (COLA) for 2024 is officially scheduled, there’s a possibility of an advance on this increment.

Understanding COLA

COLA is a crucial mechanism designed to provide retirees with extra funds to combat inflation. Traditionally, Social Security checks receive an annual boost at the start of each year. However, 2024 promises a slight twist to this routine.

Early Arrival of COLA Payments

In 2024, the initial COLA payments will not wait until the year’s end but will arrive earlier, especially for a specific group of beneficiaries. Others need not worry as they will eventually receive the increase, albeit a bit later.

Key Takeaway

The key takeaway from this development is the assurance of Social Security checks arriving smoothly, along with the COLA-driven boost. This news is particularly welcome for citizens grappling with the challenges of inflation.

When Does the First COLA Payment Arrive?

Many Americans associate COLA with the start of the year, while some link it to the end of the current year. The timing of your COLA payment depends on your payment method and benefit types.

Requirements for Early COLA Access

To receive the COLA before 2024 commences, you must fulfill two requirements:

1. Supplemental Security Income Acceptance: You need to be eligible for Supplemental Security Income (SSI).
2. Direct Deposit Activation: You must have activated Direct Deposit as your preferred method for receiving payments.

Meeting these criteria will result in receiving the first Social Security Administration (SSA) check with the 2024 COLA included on December 29th.

For Others: Waiting Until the Next Year

Retirees who don’t meet these requirements will need to wait until the following year to start collecting the increased SSA checks. However, the exact COLA percentage remains uncertain, and we’ll have to wait until mid-October to determine the precise figure.

Expert Opinions on COLA Increase

While experts speculate that the COLA increase could be around 3%, it’s a significant departure from the 8.7% observed in 2023. Nonetheless, it’s premature to make definitive claims, as the exact figure will only be known in mid-October.