Updated on February 5, 2024
In the latest update for the Social Security Increase 2024, over 71 million individuals will see higher Social Security and SSI payments, as announced by the SSA. The news of increased benefits was shared on October 12, 2023, with each recipient expected to receive an average monthly boost of $50 from the Social Security Administration.
Notably, there will be no implementation of the Social Security Amount Increase in December 2023. However, come January 2024, beneficiaries can anticipate higher monthly payments, marking the commencement of the Social Security benefits raise.
Social Security Increase 2024
For many retirees in the U.S., Social Security serves as a crucial income source, with up to 90% relying on it to cover various expenses, as reported in annual surveys. The eagerly awaited annual cost-of-living adjustment (COLA), disclosed in mid-October, is a significant event for tens of millions of seniors. Just a little over a month ago, the Social Security Administration confirmed a 3.2% increase in retirement benefits for 2024. Although this is considerably lower than the 8.7% boost in 2023, it still stands as one of the most substantial increases in decades, underscoring its impact on the financial security of retirees.
Social Security benefits increasing 3.2% in 2024
Starting January 2024, both retirement and disability payments are set to increase by 3.2%, providing an average boost of over $50 per month. This marks a notable decrease compared to the previous two years in the cost of living adjustment, impacting over 71 million individuals relying on Social Security.
As per the Social Security Administration’s announcement, the cost-of-living adjustment for 2024 will be 3.2%, a significant drop from the 8.7% seen in 2023. For recipients, this translates to an average monthly increase of almost $60. Despite the decrease, this adjustment comes amid rising inflation and follows the largest COLA for Social Security beneficiaries in over four decades in 2023. Over the past two decades, the average COLA has stood at 2.6%.
Why Social Security is important for Americans?
Certainly! Social Security plays a crucial role in the lives of senior citizens in the USA. It’s not just a financial support; it’s a lifeline for many retirees. Experts estimate that it contributes about one-third of the average retiree’s total income, highlighting its significance.
In fact, the Social Security Administration discovered that a quarter of senior families rely on Social Security payments for a whopping 90% of their family income. Moreover, nearly half of the senior population resides in households where Social Security provides at least half of the family’s income. These statistics underscore the vital role Social Security plays in ensuring financial stability and well-being for many seniors in the United States.
What do COLA rises aim to achieve?