Social Security benefits will increase 3.2% in 2024

• Social Security benefits will increase in 2024.
• The COLA increase has been announced.
• Inflation has moderated in recent months.

Millions of Social Security recipients will get a 3.2% increase in their benefits in 2024.

The amount is much less than last year’s historic boost and reflects the moderation in consumer prices.

The cost of living adjustment, or COLA, means the average beneficiary will receive more than $50 more each month starting in January.

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The Social Security Administration indicated on Thursday, October 12, what this year’s cost of living increase will be.

The American Association of Retired Persons (AARP) estimated that increase will amount to about $59 per month.

“This will help millions of people keep up with their expenses,” said Kilolo Kijakazi, acting commissioner of the Social Security Administration.

About 71 million people, including retirees, the disabled and children, receive Social Security benefits, the AP noted.

Millions in the US will benefit from COLA

This cost of living adjustment (COLA) marks a significant change and reflects the moderation in consumer prices.

The reason behind this more moderate increase for 2024 is the decrease in inflation compared to the previous year.

In 2023, beneficiaries received a benefit increase of 8.7%, which was due to record inflation not seen in 40 years.

This exceptional increase occurred due to the rapid increase in the price of consumer, which led to the larger than usual COLA increase.

This year’s Social Security benefits will increase

Although the increase is smaller than last year’s, it is still welcome news for many retirees and Social Security beneficiaries.

“Retirees can rest a little easier at night…” AARP CEO Jo Ann Jenkins stated.

«[T]hey will soon receive an increase in their Social Security checks to help them keep up with rising prices,» she said.

«We know older Americans are still feeling the sting when they buy groceries and gas,» Jenkins added.

Inflation is lower compared to last year

In addition, the executive director of AARP pointed out that «every dollar» is important.

Social Security is funded by payroll taxes collected from workers and their employers.

Notably, the maximum amount of earnings subject to Social Security payroll taxes will increase to $168,600.

This adjustment reflects changes in workers’ wages and earnings compared to 2023, according to The Associated Press.

The impact and importance of Social Security

Nancy Altman, president of advocacy group, Social Security Works, said the COLA is a “reminder of Social Security’s unique importance.”

She also called on Congress to pass laws to protect and expand Social Security benefits.

Likewise, Nancy Altman recognized how important this program is in the lives of millions of Americans.

They will see economic relief reflected in their bank accounts as long as they are beneficiaries of Social Security.

The future of Social Security

The announcement of a 3.2% increase in Social Security benefits in 2024 provides welcome relief to beneficiaries.

Although the COLA is lower than last year, it is still a significant factor in the financial well-being of retirees and other beneficiaries.

The future of the Social Security program remains an important issue, and advocates are pushing for its protection and expansion.

In the near future, the exact amount of the COLA increase will be announced.