Every year, a date circled in red by many U.S. retirees is the announcement of the Cost of Living Adjustment (COLA) increase. A crucial tool, this annual bump not only adds extra dollars to the pockets of American retirees but also enhances their quality of life by amplifying their monthly income.
Though the announcement always comes in October, the exact day can vary, keeping beneficiaries on their toes about when they will learn of the new adjustments to their benefits. The U.S. government and the Social Security Administration have already signaled when the anticipated percentage hike in COLA will be unveiled.
Upon this announcement, it’s a waiting game for beneficiaries to see the welcome increase materialize in their monthly checks, offering a slight uplift to their financial stability and purchasing power, month after month.
WHEN WILL BE THE DATE OF THE SOCIAL SECURITY COLA ANNOUNCEMENT?
As happens every new year, we can already know on what day we will be aware of the Social Security pension increase. In this year 2023, the United States Administration and Government will make the COLA public on October 12 at 8:30 a.m.
Therefore, in just 8 days from now we will already be able to know the exact amount that all benefits will increase in 2024. And remember that this amount is a percentage, that is, each citizen will have an increase proportional to the benefit they currently receive.
This means that each citizen will get a different amount of extra money. Americans with a Social Security benefit of $4,555 will be able to reach a check for that amount of money plus the full percentage.
If the COLA eventually becomes 3%, as they are predicting in many quarters, that check would come to about $4,691 per month, a very large Social Security payment that would be perfect for retirees.
THE FIRST CHECK WITH THE 2024 COLA ARRIVING IN 2023
Although the new COLA will increase Social Security checks for payments starting next year 2024, the first payment with the increase will arrive earlier.
This payment will be the January 2024 Supplemental Security Income. The reason this is happening is because the Social Security Administration does not send payments of any kind on weekends or holidays.
Since the SSI payment is usually on the 1st of each month and January 1 is a holiday, the ad. Administration will send check on the immediately preceding business day, i.e., December 29.
This makes the payment arrive before 2024 to those citizens who have Direct Deposit activated as a collection method.
Getting a Social Security check before the end of 2023 can give recipients a more affluent start to the year. This way they will be able to celebrate New Year’s Day with a nice feast.
However, by getting the money early, during the month of January they will have several more days in which they will not receive the payment. So it is important to know how to manage your money throughout the month.