The Social Security Administration announced that more than 71 million Americans will see a 3.2% increase in their Social Security benefits and Supplemental Security Income (SSI) payments in 2024. On average, Social Security retirement benefits will increase by more than $50 per month starting in January.
A SSA press release explains that federal benefit rates increase when the cost-of-living rises, as measured by the Department of Labor’s Consumer Price Index (CPI-W). The CPI-W rises when inflation increases, leading to increased prices for goods and services. A cost-of-living adjustment (COLA) is instituted to help offset increased costs.
COLA notices will mail throughout December to retirement, survivors, and disability beneficiaries, SSI recipients, and representative payees. Benefit amounts will not be available before December. R
Recipients who prefer to access their COLA notice online instead of through the mail may log in to their personal my Social Security account to opt out by changing preferences in the Message Center. Those who don’t yet have an online account must create one by November 14, 2023, to receive the 2024 COLA notice online.
Additional changes in January 2024 includes an increase in the national average wage index. An example is the maximum amount of earnings subject to Social Security payroll tax in 2024 will be higher. The retirement earnings test exempt amount will also change in 2024.