The Social Security Administration (SSA) has announced that Social Security benefits and Supplemental Security Income (SSI) payments will increase by 3.2% in 2024. This is the annual cost-of-living adjustment (COLA) based on the Consumer Price Index for Wage Earners and Clerical Workers (CPI-W). The CPI-W measures inflation that tracks the prices of goods and services that most Americans buy.
The 3.2% COLA for 2024 is significantly lower than the 8.7% COLA beneficiaries received in 2023. This is because inflation has moderated over the past year.
The cost of living increase will be applied to all Social Security benefits, including retirement, disability, survivor, and SSI benefits. The average Social Security retirement benefit will increase by more than $50 per month starting in January 2024.
The COLA is important for Social Security beneficiaries because it helps ensure their benefits keep pace with the rising cost of living. The COLA is especially important for low-income beneficiaries, who rely on Social Security for the majority of their income.
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Reference: https://blog.ssa.gov/social-security-benefits-increase-in-2024/
