The Social Security Administration (SSA) has recently released details on the 2024 cost-of-living adjustment (COLA). This COLA will affect over 71 million Americans who receive Social Security benefits. For recipients, this adjustment is an important factor in maintaining purchasing power given rises in inflation.
Beginning in January, Social Security recipients will receive a 3.2% bump. Although lower than last year’s 8.7% increase, it’s still above the two-decade average of 2.6%.
What does this mean in dollars? In January, retirees should expect to receive an average $59 bump in their monthly benefit, bringing the estimated average benefit to $1,907 per month.
Image by Matt Bennett, Unsplash
The COLA is determined based on third-quarter data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). With inflation moderating, the CPI-W showed slower rises in prices thus resulting in a lower COLA for 2024.
COLA notices will be available online in the Message Center of your My Social Security account beginning in December 2023.
Let me know if you have questions or concerns. I’m here to ensure you fully understand Social Security benefits and your broader financial picture.
Thank you,
Joe Ezernack
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