The Social Security Administration (SSA) sends out various benefits each month.retired workers and survivors (children, spouses, widows, widowed or deceased beneficiary parents).
It also remits disability benefits such as Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).
Due to cost of living adjustments, these benefits increase each year (COLA), calculated and applied to payments so as not to affect the purchasing power of the beneficiary.
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How is COLA calculated?
COLA is Urban Wage Workers and White Collar Consumer Price Index (CPI-W).
COLA calculation begins from the third quarter of the previous year To third quarter of the year; based on CPI-W data for July, August and September of both years.
For example, the CPI-W difference between 2021 and 2022 was 8.7%, so Social Security payments in 2023 increased by this percentage. As for 2024, there are only predictions as to what the COLA will be. However, the official announcement of the exact percentage is not yet published.
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When will the increase in Social Security benefits be officially announced?
COLA will be released when CPI-W data corresponding to July, August and September are available for calculation. The official COLA for 2024 is expected to be announced in October of this year.
Based on last year’s announcement, Next year’s cost of living adjustment could be announced on Oct. 12the day the Bureau of Labor Statistics releases its Consumer Price Index report.
The COLA will enter into force in December, It will be applied for the first time to Social Security and SSI payments in January 2024.
Social Security COLA 2024: Forecast
According to the latest estimates from the Federation of the Elderly, one of the country’s largest non-partisan organizations for the elderly, The 2024 Social Security cost of living adjustment could be 3%. This estimate is based on July consumer price index data.
