Come 2024, individuals on Social Security will see a 3.2% rise in their monthly payouts.
The Social Security Administration (SSA) confirmed on Thursday its yearly cost-of-living adjustment (COLA) set to take effect in 2024 for its beneficiaries. This 3.2% uptick is substantial compared to several past years, although it doesn’t match the significant 8.7% leap seen in 2023.
“Beneficiaries of Social Security and SSI will experience a rise in their benefits in 2024, assisting millions in managing their daily expenses,” stated Kilolo Kijakazi, the interim commissioner of Social Security, in a press release on Thursday.
These yearly COLA are established to ensure that the purchasing power of Social Security and Supplemental Security Income (SSI) recipients remains stable in the face of inflation. The adjustments, calculated based on the Bureau of Labor’s Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), reflect the fluctuation in costs for everyday goods and services.
The newest CPI-W data, encompassing price changes up to September, unveiled a 0.2% rise for the month and a 3.6% upswing over the previous year, and was made public on Thursday morning.
However, the 3.2% surge set for 2024 might not suffice for seniors’ escalating living costs, the Senior Citizen’s League (TSCL), an impartial advocacy organization, has cautioned. They attribute this to the CPI-W’s inadequacy in mirroring older adults’ actual expenditures, who often allocate more of their finances to food and medications.
Mary Johnson, a policy analyst for TSCL, previously emphasized the need for a more encompassing strategy. “Individuals are also witnessing extended retirements, complicating savings efforts,” she added in a discussion with Nexstar in 2022.
Simultaneously, the AARP demanded more robust legislative action to reinforce Social Security. “AARP implores a bipartisan effort in Congress to fortify Social Security, ensuring a dependable long-term strategy for present and future retirees,” declared Jo Ann Jenkins, AARP’s CEO. “After a lifetime of contributions, it’s only just that Americans receive the benefits they’ve earned.”
Jenkins acknowledged the burden of soaring costs on seniors but suggested the upcoming benefit increase might offer a semblance of relief.
These augmented payouts will commence in January 2024 for those on Social Security (with the specific date contingent on each recipient’s birth date), while SSI beneficiaries will notice their first enhanced payments towards the end of December 2023.
