This week the Social Security Administration announced the 2024 COLA. People who are receiving Social Security benefits will see a 3.2% increase in 2024. Even though the 3.2% increase is less than the COLA increase from 2023 it will help people who are relying on benefits pay for the higher costs of essentials like food, housing, and utilities.
What Is the 2024 COLA?
The Social Security Administration’s 2024 COLA is an increase in the amount of benefits that are given out to keep pace with inflation and higher living costs. The cost of living adjustment, or COLA, is based on data from the Consumer Price Index, or the CPI-W, that tracks increases in the prices of goods and services. The SSA has announced the COLA for 2024 is 3.2%.
In 2023 the COLA was the biggest increase in the history of the SSA, so this year’s 3.2% increase may seem very low compared to that. But the average COLA in the past has been around 2% so the 3.2% increase is still higher than average.
| 2023 | 2024 | |
| Non-Blind SGA | $1,470/mo. | $1,550/mo. |
| Blind SGA | $2,460/mo. | $2,590/mo. |
| Trial Work Period | $1,050/mo. | $1,110/mo. |
| Max. Benefit at Retirement Age | $3,627/mo. | $3,822/mo. |
| SSI Standard Payment: Individual | $914/mo. | $943/mo. |
| SSI Standard Payment: Couple | $1,371/mo. | $1,415/mo. |
| Average Monthly Payments | Before 3.2% COLA | After 3.2% COLA |
| All Retired Workers | $1,848 | $1,907 |
| Widowed Mother and Two Children | $3,540 | $3,653 |
| Aged Widow(er) Alone | $1,718 | $1,773 |
| Disabled Worker & Child | $2,636 | $2,720 |
| All Disabled Workers | $1,489 | $1,537 |
Past COLA Increases
In 2023 the COLA announced by the SSA was a whopping 8.7%, the largest increase ever. But that increase was largely due to record-setting inflation in the wake of the Covid-19 pandemic. Now that inflation has slowed down a smaller COLA was expected in 2024 to match the slowed increase in consumer pricing.
Experts are quick to point out that the average COLA from the past few years is around 2%, so the 2024 Social Security COLA is still higher than usual. The COLA increases from the past five years were:
- 2023: 3.2%
- 2022: 8.7%
- 2021: 5.9%
- 2020: 1.3%
- 2019: 1.6%
The 3.2% COLA for 2024 will increase the monthly amount of benefits that people get by around $57.
How To Access Your New Payment Amount
If you want to find out what your new payment will be and how much of an increase you will see in your Social Security benefits you can check your MySocialSecurity account online to see the updated payment amount that will begin in 2024. The Social Security Administration will also mail you an updated explanation of benefits that will list your increase and your new payment amount. The new payment amount will start in January 2024.
If you want to find out what your new payment will be and how much of an increase you will see in your Social Security benefits you can check your MySocialSecurity account online to see the updated payment amount that will begin in 2024. The Social Security Administration will also mail you an updated explanation of benefits that will list your increase and your new payment amount. The new payment amount will start in January 2024.
How The COLA Impacts Those Who Aren’t Receiving Benefits
There are other changes to the way that Social Security benefits are calculated that can impact people who aren’t yet receiving benefits including:
Taxable Income Change
The amount of money that you can earn that will be considered taxable income for the purposes of Social Security benefits has increased from $160,200 to $168,600 in the SSA’s COLA update for 2024.
SGA Change
The amount of money that you can earn while still receiving benefits will also change in 2024. The monthly amount that blind individuals can earn without affecting their benefits in 2024 is $2590. For non-blind individuals, the maximum amount of money they can earn each month is $1550.
Work Credit Change
Another change announced by the SSA is that the value of a work credit will increase beginning in 2024. The value of one earned work credit will increase from $1,510 to $1,640.
