The significance of Social Security for the well-being of Americans cannot be overstated. The SSA administers benefits to almost 70 million people, and millions more sign up for its programs each year. One distinctive feature of Social Security is that its benefits are annually updated to account for inflation. The goal of COLAs is to maintain financial resources, and they have become increasingly important as inflation has increased recently.
Changes In CPI
The significant changes in the Consumer Price Index for 2021 and 2022 were reflected in the COLAs of 5.9% and 8.7% that went into effect in 2022 and 2023, respectively. Prices increased by 3.2% starting in 2024 for Social Security recipients, even though the rate of inflation decreased in 2023. However, the primary issue with Social Security COLAs is their retroactive nature. The only time recipients’ checks are increased is when the cost of needs has increased. It makes sense, then, that a lot of people are eager to start receiving those larger Social Security benefits as soon as reasonable.
Social Security Payment 2024
Regretfully, cost-of-living adjustments are not immediately reflected in the system. It may take a few more weeks until the COLA for 2024 starts to appear in your bank account. This is the reason for it, along with important information regarding when you should anticipate receiving greater benefits. Social Security payments made in January include cost-of-living adjustments. But the precise moment will depend on your birthday as well as possibly the birthdays of other family members. Here is when you should anticipate receiving your first COLA-enhanced Social Security check if you are collecting your retirement funds based on your employment history.
Social Security Benefits Based On Birthday Dates
If your birthday falls between the first and the tenth of the month, your Social Security payments will be paid on January 10, 2024, which is a Wednesday. Should your birthday fall between the eleventh and twentieth of the month, your payment date will be January 17, 2024, which is the third Wednesday. If your birthday falls between the 21st and the 31st of that month, your payment is due on January 24, 2024. It’s also possible that the amount on your check will increase by less than 3.2%. This is because many Social Security recipients are also registered with Medicare, and your payment is often withheld each month to cover the cost of your Medicare coverage.
Specifically, in 2024, the monthly standard cost for Part B health insurance under traditional Medicare increased by $9.80, reaching $174.70. This implies that rising Medicare expenditures may account for almost $10 of your COLA. The $10 Medicare portion will account for a sizeable portion of the $59 total rise that typical retired workers, whose benefits averaged $1,848 per month before the COLA’s application, will be eligible for in 2024. While almost everyone would benefit from a higher Social Security payment, the program nevertheless does an excellent job of giving people who are no longer working much-needed income. You may be confident that you will receive your COLA-increased payment in the future weeks, even if you haven’t received it yet.