Check out when will be the Social Security cost of living adjustment 2024 increase!
Social Security beneficiaries are already preparing for a smaller increase in their cost of living adjustment 2024 benefits compared to their 2023 benefits, but they won’t know the precise amount until the Social Security Administration makes its formal announcement next month.
The annual cost-of-living adjustments (COLA) implemented by the administration are intended to assist recipients of Supplemental Security Income (SSI) and Social Security in maintaining their purchasing power in the face of growing inflation.
These increases, which are announced each year, are based on changes in the costs of popular consumer goods and services as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) of the Bureau of Labor.
Every month, the Labor Bureau actually produces a revised CPI-W that reflects changes in the cost of a variety of consumer goods and services, such as food, utilities, and housing.
The annual COLA adjustment, however, is only calculated using data from a select few months, namely July, August, and September.
The estimated Social Security cost of living adjustment 2024 increase is expected to be considerably less than the 8.7% increase provided to beneficiaries in 2023 based on CPI-W data from July and August.
According to a news release released by the Senior Citizens League, a nonpartisan senior advocacy organization, the Social Security cost of living adjustment 2024 will probably be 3.2% based on an increase in consumer pricing data through August.
As the data for September have not yet been taken into account, the actual adjustment amount of the Social Security cost of living adjustment 2024 may still differ somewhat from the group’s estimate.
The official increase of the Social Security cost of living adjustment 2024 will be announced following the publication of the September CPI-W data on October 12 at 8:30 a.m. Eastern in the second week of the month.
For Social Security users, those higher payments of Social Security cost of living adjustment 2024 will go effective in January 2024. On the other hand, SSI recipients won’t start getting their first adjusted payments until close to the end of December 2023.