For those receiving Social Security benefits, a welcome change is on the horizon. A cost-of-living adjustment (COLA) is set to take effect in 2024, bringing a 3.2% increase in benefit payments.
This adjustment is designed to offset the impact of inflation, ensuring that Social Security recipients maintain their purchasing power in the face of rising prices.
The timing of the Increase
The 3.2% boost in Social Security benefits will kick in with the first payment for the 2024 benefits year. Recipients of Supplemental Security Income (SSI) will see the increase reflected in their December 29, 2023 payment.
Retirement benefit recipients, on the other hand, will experience the bump with their first January payment in the new year.
Social Security is actively informing recipients about the upcoming benefits increase through COLA notices. These notifications are typically mailed throughout the month of December.
If you haven’t received your notice immediately, there’s no need to worry. Social Security advises against contacting them until January if you haven’t received your COLA notice.
COLA-Adjusted Social Security Information Online Early Access
For those who prefer not to wait for a mailed notification, the document will be available online at my Social Security starting in early December. By logging in, you can preview the precise amount of your new benefit after the COLA adjustment, allowing you to plan accordingly.
If you’re eager to estimate your benefits increase before the official notification, you can do so by multiplying your current Social Security payments by the 3.2% COLA increase.
Additionally, consider subtracting any increase in Medicare Part B premiums that will take effect in 2024. Standard Medicare Part B premiums will see a monthly increase of $9.80 compared to the previous year, directly impacting Social Security checks.
While the prospect of a larger check is exciting, it’s crucial to approach the COLA increase with a strategic plan. Remember that COLA isn’t extra money; its purpose is to address the rising costs of goods and services.
To make the most of your increased benefits, create a budget that prioritizes essential expenses and allocates funds wisely.
The upcoming Social Security benefits increase in 2024 is a positive development for retirees and recipients, offering relief in the face of inflation.
By staying informed about the timing of the adjustment, accessing online notifications, and planning for the additional funds, beneficiaries can navigate this change effectively.
A thoughtful approach to budgeting will ensure that the increased benefits serve their intended purpose—helping individuals maintain financial stability in an ever-changing economic landscape.