Social Security beneficiaries could anticipate a low yearly COLA in 2024. It’s a big decrease from the large inflation-driven rises of the two years before this one, which were 5.9 percent last year and 8.7 percent in 2023, respectively. Those increases were the largest since the early 1980s.
Social Security Benefits; Source- CNBC
2024 Social Security COLA
The 3.2% COLA remains higher than the 2.6 percent average for the previous 20 years, notwithstanding this decline. This yearly adjustment has decreased from the nearly four-decade triumphs of the previous year, and it is determined using inflation statistics from August through October. For 2024, the SSI is 3.2%. Even though the pace of growth has decreased, expensive prices are still a cause for concern. According to a survey conducted by The Senior Citizens League, a significant number of seniors are still concerned about their finances. Specifically, almost two-thirds of them stated that their household expenses had increased by at least 10% since a year ago.
Hike In Social Security Benefits And SSI
Furthermore, 56% of respondents worry that they won’t have enough money in retirement to pay for necessities. The cost of living is still a major concern for pensioners and Social Security recipients even with the decreased COLA for 2024. In 2024, Social Security as well as SSI payments will increase by 3.2 percent for over 71 million Americans. This will result in an average monthly increase of more than $50 for Social Security benefits for retirement, starting in January. Completed at 3.2 percent, the COLA rise for 2024 is less than the 8.7 percent increase for 2023. Accordingly, a person’s $10,000 payment in 2023 would increase to $10,870, which would be paid out every month by the SSA.
Eligibility For Increased Social Security Benefits
Per the COLA adjustment, SNAP benefits which help people with shopping expenses will also be increased for 2024. However, there are limitations associated with SNAP, such as the inability to use benefits for the purchase of alcohol. The US government will pay the COLA increase benefit to employees who are covered by the Federal Employees Retirement System (FERS), FERS Special, Civil Service Retirement System (CSRS), Organization and Disability Retirement System (ORDS), or both. COLA is not available to FERS individuals under the age of 62 unless specific requirements are satisfied.
The year 2024 is subject to the same rule. Those who retired under FERS, in particular, benefited from a 7.7 percent boost in 2023; however, this amount is subject to yearly changes. While the rate of rise in 2024 is less than that of the previous year, it nonetheless attempts to mitigate the effects of inflation on pensioners and beneficiaries. Significant ramifications result from this rise, particularly for Social Security recipients.
