Social Security Administration announces 3.2% benefit increase for 2024
Social Security and Supplemental Security Income (SSI) benefits for more than 71 million Americans will increase by 3.2% next year, the Social Security Administration (SSA) announced on Thursday, Oct. 12, 2023.
On average, Social Security retirement benefits will increase by more than $50 per month, according to a release from the SSA.
More than 66 million Social Security beneficiaries will see a 3.2% cost-of-living adjustment (COLA) beginning in Jan. 2024. Increased payments to approximately 7.5 million people receiving SSI will begin on Dec. 29, 2023.
SSA noted that some people receive both Social Security and SSI benefits.
“Social Security and SSI benefits will increase in 2024, and this will help millions of people keep up with expenses,” said Kilolo Kijakazi, Acting Commissioner of Social Security.
SSA said some other adjustments that take effect in January of each year are based on the increase in average wages.
“Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $168,600 from $160,200,” SSA stated.
Social Security will begin notifying people about their new benefit amount by mail starting in early December.
“Individuals who have a personal My Social Security account can view their COLA notice online, which is secure, easy and faster than receiving a letter in the mail,” SSA said. “People can set up text or email alerts when there is a new message–such as their COLA notice–waiting for them in My Social Security.”
Individuals must have a My Social Security account by Nov. 14 to see their COLA notice online. To get started, visit: ssa.gov/myaccount.
Information about Medicare changes for 2024 will be available at medicare.gov. For Social Security beneficiaries enrolled in Medicare, their new 2024 benefit amount will be available in December through the mailed COLA notice and My Social Security’s Message Center, SSA said.
The Social Security Act provides for how the COLA is calculated. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as determined by the Department of Labor’s Bureau of Labor Statistics.
For more information, visit: ssa.gov/cola.