Millions of Americans will experience a 3.2% increase. social security and Supplemental Securities Income (SSI) This month, SS beneficiaries should start seeing an increase in their benefits as the 2024 Annual Cost of Living Adjustment (COLA) goes into effect.
Payment increases began on December 29, 2023 for approximately 7.5 million SSI users. 3.2% Cost of Living Adjustment (COLA) Efforts to combat inflation will begin with benefits given to more than 66 million Social Security recipients in January 2024.
in front of pandemic, The last time COLA was higher than this year was in 2011, when it reached 3.6%. This is a more subdued increase than the 8.7% COLA observed in 2023, the largest in over 40 years, and indicates cooling in retail prices.
COLA recipient People born between February 1st and February 10th will receive their check on February 14th, and those born between February 11th and February 20th will receive their payment on February 21st. Masu. According to the overall schedule, a beneficiary whose date of birth is after the 21st of February will receive funds on her February 28th.
The maximum payment amount is retiree The average monthly payment they receive is $1,907, compared to $4,873 this year. The average pay for retirees this year is $58 higher than the average pay for 2023.
Click here for more information on COLA adjustments. Social Security Changes ā COLA Fact Sheet
Income limits and tax limits
Tax limit, i.e. the maximum amount of income subject to tax social security tax, is expected to rise to $168,600. For an employee who has not reached the “full” retirement age, the maximum income for him increases to $22,320.
Finally, when a person reaches āfullā retirement age in 2024, the income limit increases to $59,520. There is no wage cap for employees who are above “full” retirement age throughout the year.
COLA adjustments for the past 10 years
The primary goal of COLA is to prevent inflation from reducing the purchasing power of Social Security and Supplemental Security Income (SSI) benefits.
a Consumer Price Index for Urban Wage and Office Workers (CPI-W) The percentage increase from the previous year’s third quarter was used to calculate the COLA for this year’s third quarter. Without an increase, there is no COLA.
- January 2014 ā 1.5%
- January 2015 ā 1.7%
- January 2016 ā 0.0%
- January 2017 ā 0.3%
- January 2018 ā 2.0%
- January 2019 ā 2.8%
- January 2020 ā 1.6%
- January 2021 ā 1.3%
- January 2022 ā 5.9%
- January 2023 ā 8.7%
- January 2024 ā 3.2%
While this year’s COLA falls short of the large increase seen in 2023, a sign of slowing inflation, it still provides much-needed financial relief to millions of Americans.
US inflation rate in 2023
of US Department of Labor released data on February 13, 2024, showing the country’s annual inflation rate for the 12 months to January was 3.1%, down from 3.4% previously.
The next inflation report will include detailed inflation rates for the 12 months ending February 2024 and is scheduled to be released at 8:30 a.m. ET on March 12.
by US inflation calculatorthe inflation rate for 2023 is:
- January ā 6.4%
- February ā 6.0%
- March ā 5.0%
- April ā 4.9%
- May ā 4.0%
- June ā 3.0%
- July ā 3.2%
- August ā 3.7%
- September ā 3.7%
- October ā 3.2%
- November ā 3.1%
- December ā 3.4%
Understanding inflation And the impact it has on the economy, wages and COLA is complex. Therefore, it is important to stay informed in order to make informed financial decisions. For more detailed information, always check the following information: SSA website.