When will Social Security benefits include the 2024 COLA?

When will Social Security benefits include the 2024 COLA?

It’s that time of year when the Social Security Administration (SSA) commences its annual process of calculating the cost-of-living adjustment (COLA) increase for the next year. Social Security beneficiaries are eagerly awaiting the announcement of how much their monthly payments will rise.

The SSA determines this annual COLA using inflation data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), supplied by the US Department of Labor. However, it is essential to note that this data is specifically from the third quarter of the previous year (July, August, and September) preceding the COLA adjustment.

In the prior year, the SSA revealed a historic COLA increase of 8.7 percent, largely influenced by a peak in inflation in June 2022, reaching a four-decade high. Although inflation rates have since moderated in the United States, the increased cost of living continues to impact families, especially Social Security recipients. While a slowdown in price increases is generally positive, it also means that beneficiaries should not anticipate an increase on par with the 2023 COLA.

So, when can you expect the 2024 COLA adjustments to begin, and when will you receive them?

The announcement of the 2024 COLA will occur once the CPI-W data for September 2023 is released, scheduled for October 12th. According to current estimates from the Senior Citizen League, a non-partisan senior advocacy group, the prediction has risen slightly in its latest report, from 2.7 percent to 3 percent. Based on the group’s calculations, this would translate to an additional monthly benefit of nearly $54, considering an average monthly benefit of $1,789.

Though the COLA increase will be disclosed in October, Social Security recipients will not receive the precise details of the adjustment until December, when the agency dispatches notices to beneficiaries.

The increased payments will be included with the initial disbursements for the subsequent year, corresponding to January 2024. Those receiving Supplemental Security Income (SSI), a group receiving payments on the first day of each month, will witness the first elevated monthly payments on Friday, December 29. This is because January 1, 2024, falls on a Monday, which is a holiday. Consequently, payments are shifted to the first applicable date for bank transactions to be processed.

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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Sandiego Currents journalist was involved in the writing and production of this article.

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