COLA 2023
Social Security and Supplemental Security Income (SSI) benefits will increase by 3.2 percent in 2024. The average Social Security monthly benefit check is expected to rise by about $55.
Increased payments will begin in January 2024 for Social Security and December 29th, 2023, for SSI beneficiaries.
This year’s adjustment of 3.2% is lower than last year’s epic 8.7% due to easing inflation.
The increased payments are expected to apply to more than 66 million Social Security beneficiaries and 7.5 million SSI beneficiaries.
About COLA
The purpose of the Cost-of-Living Adjustment (COLA) is to ensure that the purchasing power of Social Security and SSI benefits is not eroded by inflation. The adjustment is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Automatic annual COLAs began in 1975 as part of the 1972 Social Security Amendments.
US Government spending on Social Security is at a current level of $1.353T, up from $1.219T one year ago. This is an 11% change. Looking ahead, the Office of Management and Budget expects Social Security spending to reach $1.849T in 2028. This equates to around a 36% increase from here.
Stay Safe
We are aware of fraudulent calls and internet “phishing” schemes targeting Social Security beneficiaries. Protect your accounts and identity by not revealing personal information, selecting malicious web links, or opening malicious email attachments.
No government agency or reputable company will solicit your personal information or request advanced fees for services in the form of wire transfers or gift cards. Social Security plans to notify recipients in December by mail and online through the “my Social Security account” available at https://www.ssa.gov/myaccount/.
Did You Know
Social Security benefits are typically computed using "average indexed monthly earnings." This average summarizes up to 35 years of a worker's indexed earnings. Administrators apply a formula to this average to compute the primary insurance amount.