Social Security increase 2024
Each year beneficiaries receive an increase in their Social Security benefit payments. This is called a COLA. In 2024, the Social Security increase 2024 will be 3.2%. This is much less than the 2023 COLA of 8.7%.
The COLA is calculated by the U.S. Bureau of Labor Statistics with data they get from the CPI (Consumer Price Index) the CPI tracks the costs of goods & services. The CPI stated that there was an increase in the inflation rate of 3.7% from last year.
An annual increase in Social Security benefits is provided to give seniors a little help against the high cost of inflation on their budgets and give them a little more purchasing power year after year. This in turn helps the overall economy.
What this means to beneficiaries:
The 3.2% COLA increase means that beneficiaries should receive an increase in their Social Security benefit checks.
In most cases, when there is COLA increase, there will also be an increase in Medicare Part B premiums. Because Medicare premiums are deducted from Social Security benefit checks, The slight increase in COLA may not be noticed at all. This results in very little financial relief.
It is important to note, the federal law has a hold harmless clause that states, “no increase in Part B premiums can reduce a Social Security recipient’s monthly check below what it was in the previous year.” At least this protects Social Security recipients to some extent.
When will the Social Security payments increase:
The annual payment increase will be received in January of 2024. Beneficiaries should receive notification in December with their specific benefit details.
If you are a beneficiary whose birthday falls on the 1st through the 10th of the month, you will receive your benefit on the 2nd Wednesday of each month. Beneficiaries whose birthday falls on the 11th through the 20th, payments will be received the 3rd Wednesday of each month. Anyone whose birthday is between the 21st and 31st receives their benefits the 4th Wednesday of each month.
Note: An increase to Social Security may impact eligibility for drug help (Medicare Savings Program)
How to find out your benefit amount:
The fastest and most convenient way to keep track of your social security benefit is by creating a my Social Security account. Use your account to check your Social Security statement, report your wages or change your address and more.
As of December, most beneficiaries can access their Social Security COLA notice online. Just go to the message center in your account to view payment details. Notices will still go out in the mail.
You must create an account by November 24,2023 to view the COLA notice online.
Once you have an account, log on and manage your notification preferences. Just go to “Message Center Preferences” and choose your message options. You can receive courtesy messages either in your email or by text message. Once you sign up for courtesy notifications, Social Security will send notifications to the Message Center inbox in your account. You will get an email or text to tell you there is a message in your account.