WASHINGTON, D.C. – The Social Security Administration has recently unveiled an encouraging development for more than 71 million Americans, announcing a 3.2 percent increase in Social Security and Supplemental Security Income (SSI) benefits for the year 2024. These adjustments are set to provide much-needed relief, particularly in the face of rising living expenses, with Social Security retirement benefits expected to rise by over $50 per month starting from January next year.
The Social Security Administration, responsible for the distribution of these crucial benefits, disclosed that more than 66 million Social Security beneficiaries will experience the 3.2 percent cost-of-living adjustment (COLA) from January 2024. Concurrently, approximately 7.5 million individuals receiving SSI will start witnessing these increased payments on December 29, 2023. It is essential to note that some Americans receive both Social Security and SSI benefits, which will ensure they benefit from this update.
Kilolo Kijakazi, the Acting Commissioner of Social Security, emphasized the significance of these benefit increases, stating, “Social Security and SSI benefits will increase in 2024, and this will help millions of people keep up with expenses.”
The COLA’s annual adjustments are calculated based on the Social Security Act, with the increase linked to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The Department of Labor’s Bureau of Labor Statistics determines the CPI-W, ensuring that the COLA reflects the real cost-of-living changes faced by beneficiaries.
Apart from the immediate boost to Social Security and SSI benefits, additional adjustments will also take effect in January of each year, primarily influenced by the increase in average wages. As a result, the maximum amount of earnings subject to the Social Security tax, known as the taxable maximum, will rise to $168,600 in 2024, up from $160,200 in the previous year.
To ensure that beneficiaries are well-informed and prepared for these changes, Social Security will begin mailing notifications about their updated benefit amounts in early December. Individuals who have a personal my Social Security account will have the option to view their COLA notice online, which is not only secure but also more expedient than traditional mail. Moreover, people can set up text or email alerts to receive notifications promptly, including their COLA notice, through the my Social Security platform.
A significant aspect to note is that individuals who wish to view their COLA notice online must have a my Social Security account by November 14. For those interested in setting up their accounts, detailed instructions and information can be found at www.ssa.gov/myaccount.
As a supplementary note, for Social Security beneficiaries who are also enrolled in Medicare, information regarding Medicare changes for 2024 will be accessible at www.medicare.gov. They can anticipate receiving their new 2024 benefit amount in December, either through the mailed COLA notice or the my Social Security Message Center.
The 3.2 percent increase in Social Security and SSI benefits for 2024 not only signifies an essential financial lifeline for millions of Americans but also showcases the government’s commitment to ensuring that these programs remain effective and responsive to the evolving needs of beneficiaries. With living costs on the rise, these adjustments come as a welcomed relief, offering financial stability and security to those who rely on these benefits for their well-being.
