- The Social Security Administration announced Thursday that more than 71 million Americans will see their Social Security and Supplemental Security Income benefits increase by 3.2% in 2024.
- Social Security retirement benefits will increase by more than $50 per month on average.
- This adjustment is much lower than the 8.7% benefit increase in 2023.
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Social security recipients are 3.2% increase in benefits The Social Security Administration announced Thursday that it will be in 2024.
The 2024 annual cost of living adjustment will affect more than 71 million Social Security and Supplemental Security Income beneficiaries. Adjustments to these benefits are made annually to help keep benefits up with inflation.
This change is estimated to increase Social Security retirement benefits by an average of $50 per month. Workers will earn an average monthly retirement benefit of $1,907, up from $1,848 this year, according to the Social Security Administration.
Most Social Security recipients will see their monthly checks increase starting in January. An SSI beneficiary will have the amount of his December check increased.
How much Social Security checks for retired beneficiaries will increase will also depend on the size of Medicare Part B premiums in 2024, which have not yet been announced.
Medicare Part B premium payments are typically deducted from your Social Security check. The Medicare Administrative Board projects that average monthly premiums could rise from $164.90 in 2023 to $174.80 in 2024.
The 2024 benefit increase is far less than the 8.7% cost-of-living adjustment Social Security recipients experienced this year in response to record high inflation, the largest adjustment in 40 years. This is lower than the 2022 cost-of-living adjustment of 5.9%.
The average cost-of-living adjustment rate over the past 20 years has been 2.6%, according to the Coalition on Senior Citizens, a nonpartisan seniors organization.
The 3.2% increase is in line with estimates released last month by the National Federation of Senior Citizens.
Social Security cost of living adjustments are calculated based on the Consumer Price Index for Urban Wage and Office Workers (CPI-W). Third quarter data is added, averaged, and compared to the previous year’s third quarter average. If there is an increase, it determines the size of the COLA.
The 2024 adjustment comes as many retirees are still struggling with high prices.
“Retirees can rest a little easier at night knowing they will soon receive larger Social Security checks to keep pace with rising prices,” AARP CEO Jo Ann Jenkins said in a statement. We can do that.”
“We know that older Americans still feel pain when they buy groceries and gas, and they value every penny,” she said.
Jenkins also called for bipartisan action in Congress to keep Social Security strong. The program faces funding shortages over the next decade. Specific proposals to modify the program include changing the way the annual cost of living is calculated.
Proponents of the change argue that the Consumer Price Index for the Elderly (CPI-E) could be a better measure of the costs faced by seniors and help preserve purchasing power. But that measure doesn’t necessarily translate into a larger annual effect, the study found.
“We’re happy to see an increase in the 2024 COLA,” said Tracy Groeniger, managing director of economic security and housing for Justice in Aging, a national organization focused on combating senior poverty. ” he said.
But this increase may not be enough, especially for older people living in poverty, she said.
“It’s not enough in the sense that people are still trying to make a living, still struggling to cover housing and health care costs,” Gronniger said.
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