In 2023, Social Security beneficiaries received 8.7 percent more in their checks thanks to the COLA cost-of-living adjustment. This was a record increase in this figure compared to previous years. For this reason, there is uncertainty as to whether this increase will be maintained in 2024 or again reduced.
The cost-of-living adjustment or COLA is a variable percentage that depends on inflation. It is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers. Its purpose is to ensure that the purchasing power of Social Security and Supplemental Security Income (SSI) benefits is maintained.
Inflation sometimes causes such an increase in prices, especially for basic necessities, that many United States citizens are unable to meet their expenses. This means that the help is also out of date if the objective is for the beneficiary to maintain his or her standard of living.
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WHEN WILL THE SOCIAL SECURITY QUEUE FOR 2024 BE KNOWN?
The Social Security Administration (SSA) is the agency in charge of announcing each year the COLA increase that will be added to Social Security checks. This usually occurs in September when the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) is published.
But when will the 2024 Social Security COLA be released? It’s scheduled for Thursday, October 12 at 8:30 a.m. To find out why the COLA percentage changes, it is important to know how it is calculated.
This is using the CPI-W, which measures inflation in a wide variety of goods and services. Once the result of the calculation is obtained, the Social Security Administration (SSA) takes the third quarter data and based on that, calculates next year’s COLA.
PERCENTAGE FORECAST FOR 2024
There is a non-profit advocacy group known as the Senior Citizens League, which prior to the official calculation, always makes an estimate. In this case, in their latest prediction they announce a COLA increase of 3% by the year 2024.
Taking into account the amount of Social Security checks currently in place, this would translate into $53.70 more per month per beneficiary, for all those individuals receiving about $1,789 per month.
The reason for the decrease from an increase of 8.7 percent to 3 percent is that inflation is lower than it was a year ago. However, citizens feel that prices are still well above what they can afford with this help.