Social Security recipients will see a cost-of-living increase of 3.2% in 2024
Social Security benefits will increase by 3.2% in 2024, the Social Security Administration announced Thursday morning.
That adds about $50 monthly to the average retirement benefit consumers will receive beginning in January. The annual increases are called cost of living adjustments, or COLA.
The agency said people on Social Security will start getting the increased payments on December 29.
“Social Security and SSI benefits will increase in 2024, and this will help millions of people keep up with expenses,” said Kilolo Kijakazi, acting commissioner of Social Security.
The cost of living adjustment is calculated based on an average of the inflation readings for the months of July, August and September. Specifically, it’s based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) published by the Bureau of Labor Statistics.
The CPI-W rose 2.6% in July, 3.4% in August and 3.6% in September, according to the latest inflation data released by the bureau on Thursday.
“Retirees can rest a little easier at night knowing they will soon receive an increase in their Social Security checks to help them keep up with rising prices. We know older Americans are still feeling the sting when they buy groceries and gas, making every dollar important,” said Jo Ann Jenkins, CEO of the nonprofit American Association of Retired Persons, in an emailed statement.