The Social Security Administration announced a 3.2% increase in benefits in 2024.
The increase is expected to give over 70 million people an average of $50 more per month, starting in January. Cost-of-living adjustments are periodically issued to reflect the rising costs of living due to factors such as inflation. Next year’s increase is smaller than expected and much smaller than 2023’s historic increase.
INFLATION RISES TO 2.2% IN SEPTEMBER IN PRODUCER PRICE INDEX, DRIVEN BY ENERGY COSTS
In 2023, the Social Security Administration increased benefits by 8.7%.
“Social Security and SSI benefits will increase in 2024, and this will help millions of people keep up with expenses,” Kilolo Kijakazi, acting commissioner of Social Security, said.
Per the Social Security Act, COLAs are calculated by taking into account increases in the Department of Labor’s consumer price index for urban wage earners and clerical workers (CPI-W).
The maximum amount of earnings subject to the Social Security tax will also see an increase from $160,200 to $168,600.
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Payments for each recipient vary, depending on several factors, including when they retired, at what age, and how much they made.
Those totals will shrink come 2034 unless Congress takes action to prevent it. Analysts estimate that the SSA will no longer be able to give full payments to recipients as early as 2034 due to a rising number of retirees and a shrinking number of workers.
