The 2024 cost of living adjustment (COLA) increase is 3.2%, according to the Social Security Administration. The increase in the cost-of-living adjustment is about a $50 monthly benefit increase for the average retiree – roughly $600 per year.
The increase is smaller than the previous two years, but is a result of lowering inflation across the U.S. The COLA for 2024 impacts roughly 73 million people receiving Social Security and Supplemental Security Income benefits.
Officials look at third quarter percentage increases of the previous year’s Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to determine COLA.
Retired military veterans, VA rates for compensation and pension for disabled veterans and surviving families will be effective Dec. 1, 2023. and will be reflected on the first check to be paid on Dec. 29, 2023.
Social Security benefits will be effective beginning with December 2023 benefits, which are payable in January 2024.
Federal SSI payment levels will begin on Dec. 29, 2023.
In 2023, Social Security Administration announced the cost of living adjustment (COLA) rose 8.7%. The increase in the cost-of-living adjustment came out to about a $140 monthly benefit increase for the average retiree – or about $1,680 per year. It was the largest single-year COLA increase in decades.
COLA increased by 5.9% in 2022.
Medicare premium increases have not been announced for 2024 yet, but here’s where to see how the COLA increase stacks up to 2023’s Medicare premiums.
COLA (Cost-of-Living Adjustments) affect the following individuals or areas:
Federal and state food and housing assistance programs
How COLA Is Determined
The Bureau of Labor Statistics’ Consumer Price Index (CPI-W) determines COLA increases. It is based on the percentage increase of the CPI-W from the third quarter of the previous year versus the current year’s third quarter (July, August and September).
Veterans who retire during the current calendar year will receive a temporary partial COLA because they already received a military pay raise in January.
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