Social Security has just issued a ruling on one of the most received and, at the same time, most demanded subsidies in the country. The Government already warned a few months ago that its amounts were going to be revised, and in the end they have kept their promise. The truth is that, on this occasion, we can speak of an SSID increase for 2024 and not of a decrease. The bad news? It will be only for these people.
COLA expected adjustment, a source of large benefits for next year
The Social Security Administration recently announced that SSI benefits will increase by 8.7% in 2024. This is the largest cost-of-living adjustment (COLA) increase for Social Security benefits in over 40 years, surpassing the 5.9% increase for 2022.
The main factor driving this substantial increase is high inflation. With inflation remaining elevated in 2022 due to high food, energy, shelter and medical care costs, the COLA formula used by the SSA resulted in an unusually large benefits boost for next year.
This adjustment is intended to help SSI recipients keep up with rising prices and preserve their purchasing power. An increase of 8.7% translates into approximately $140 more per month for the average SSI recipient. With payouts reaching record levels, this COLA hike will provide much needed relief to millions of seniors.
This people is going to get the increase: attention if you have this requirements
The 8.7% cost-of-living adjustment (COLA) for Social Security benefits will apply to retirement, disability and survivor benefits. This increase is the largest in over 40 years, significantly boosting payments to nearly 70 million Americans.
The COLA helps benefits keep pace with inflation. It is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the prior year to the third quarter of the current year. So the 2023 increase was based on the change in CPI-W from Q3 2021 to Q3 2022.
Since the COLA applies to all types of Social Security benefits, retired workers, disabled workers, spouses, children and survivors will all see the 8.7% increase. The average monthly retirement benefit will go up by $146 to $1,827 starting in January 2023.
Even the maximum benefit will increase by $197 to $3,345 per month for someone retiring at full retirement age in 2023. Disability and survivor benefits will also increase by 8.7% across the board, thanks to the equity mechanism approved by the government last year and which comes into effect this year.
SSID increase, by month: this is what you will be charged during 2024
The 8.7% cost-of-living adjustment (COLA) for 2024 will significantly boost the average monthly Social Security benefit. Retirees will see their monthly payments increase by about $146 per month. This is the largest increase in over 40 years, stemming from the unusually high inflation seen in 2022.
For the average retired worker, the monthly benefit will rise from $1,681 currently to $1,827 starting in January of 2024. A retiree who has been receiving $2,000 per month would see their benefit jump to $2,174 per month next year, meeting one of the most common demands of retirees in our country.
Across all Social Security beneficiaries, including retirees, the disabled, and survivors, the average monthly increase works out to be $146. This substantial boost in monthly income will provide welcome relief to seniors facing high costs for food, fuel, housing, and other essential expenses.
The large COLA helps Social Security benefits keep pace with inflation to preserve retirees’ purchasing power. While prices are expected to continue rising in 2023, the COLA aims to prevent benefits from losing value, something that was already feared when inflation soared and which came true, albeit in milder figures.
As you can see, this month you are going to get a surprise in the form of the SSID increase for 2024. These are the months when it will become effective and you will finally see it, while the requirements don’t seem to be as flexible as in the past. Otherwise, we expect the government to approve a new increase by the end of the year, as promised by Biden in his last State of the Union.
