Social Security Sees $200 Boost in January 2024 – Eligibility for COLA in SSA, SSI, SSDI.

Updated on February 19, 2024

In January 2024, millions of seniors can expect a welcome boost in their Social Security income with the new 3.2% cost-of-living adjustment (COLA). This $200 increase aims to cushion the impact of rising expenses like food and gasoline. As we discuss who qualifies for the $200 bump in Social Security for SSA, SSI, and SSDI, it’s a positive relief amid concerns about inflation affecting Americans’ budgets. The 2024 COLA rise offers much-needed financial support to retirees, and the details for Social Security Payment Amount 2024 will be provided here.

Social Security Sees $200 Boost in January 2024

In January 2024, millions of Social Security recipients are set to receive an increase in their payments, adjusted annually by the SSA to address inflation. With housing and food costs stabilizing in 2023, the 3.2% rise contrasts with the higher 8.7% from the previous year.

The expected boost for retired workers brings the Average Monthly Payment (AMP) from $1,848 to $1,907, but not all beneficiaries will see the hike simultaneously. While the 3.2% increase is lower than the prior year, it signifies a modest easing of consumer prices. Despite being the slowest growth in three years, it still surpasses the 2.6% average of the past two decades.

When can I expect my first increased payment?

On January 1st, which is a holiday, the Social Security Administration (SSA) announced adjustments in payments for about 7.4 million Supplemental Security Income (SSI) beneficiaries, set to be distributed on December 29. Starting January 2024, over 66 million Social Security beneficiaries will receive payments adjusted for the Cost of Living Allowance (COLA). The timing of these payments will be contingent on the individual’s birthday.

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If your birthday falls between the 1st and 10th of the month, your Social Security payment for January 2024 will be sent out on Wednesday, January 10. For those with birthdays between January 11 and 20, the payment is scheduled for Wednesday, January 17. Individuals with birthdays between January 21 and 31 will receive their SSA COLA check on Wednesday, January 24. An exception applies to those who began receiving Social Security benefits before May 1997, as they will get their SSA Payment 2024 Amount on January 3rd.

The SSA, with its employees distributing approximately $1.4 trillion in benefits to over 70 million individuals annually, has seen an increase of at least 7 million more beneficiaries enrolled over the past decade.

What Amount Will I Get in My COLA Check?

According to agency estimates, the average benefit check is projected to increase to $1,907 in 2024, a boost of approximately $49 from the current level.

Retired couples with two eligible partners are expected to see their average payout rise from $2,939 to around $3,033.

For workers with disabilities, their spouse, and one or more children, payments are anticipated to increase from $2,636 to $2,720.

All workers with disabilities can expect a payment increase from $1,489 to $1,537.

By registering on SSA.gov, you can check how much your benefits will increase.

Surviving spouses with two children are projected to see payments rise from $3,540 to $3,653.

The payout for elderly single surviving spouses has been raised from $1,718 to $1,773.

COLA Changes: 2015-2024

Since 1975, no subsequent year has witnessed COLA increases as substantial as those experienced during the three years of severe inflation in the late 1970s and early 1980s. The adjustment reached 9.9% in 1979, then decreased to 14.3% in 1980 and 11.2% in 1981, eventually stabilizing at 7.4% in 1982. Let’s now compare the COLA for 2024 with those of the past decade.

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Year COLA adjustment
2024 3.2%
2023 8.7%
2022 5.9%
2021 1.3%
2020 1.6%
2019 2.8%
2018 2.0%
2017 0.3%
2016 0.0%
2015 1.7%

 

What’s Driving the Increase in Social Security?

Many individuals opt to use their Social Security benefits to cover Medicare Part B costs automatically. If you fall into this category, any extra income from a cost-of-living adjustment might be offset by an increase in Medicare rates. Although Part B prices will decrease by USD 5.20 for 2023 after a 14.5% increase from 2021 to 2022, it’s crucial to stay vigilant about your premiums despite the adjustment.

Moreover, a higher COLA can be a double-edged sword for certain individuals. As a senior with limited income, you may look forward to an increased Social Security payment, expecting more money in your pocket. However, this boost could potentially push you above the eligibility threshold for government assistance programs like food stamps, or even subject you to taxes on your benefits.

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