Social Security recipients to receive COLA increase

More than 71 million Americans will see a 3.2% increase in their Social Security benefits and Supplemental Security Income (SSI) payments in 2024. On average, Social Security retirement benefits will increase by more than $50 per month starting in January.

Federal benefit rates increase when the cost-of-living rises, as measured by the Department of Labor’s Consumer Price Index (CPI-W). The CPI-W rises when inflation increases, leading to a higher cost of living. This change means prices for goods and services, on average, are higher. The cost-of-living adjustment (COLA) helps to offset these costs.

We will mail COLA notices throughout the month of December to retirement, survivors, and disability beneficiaries, SSI recipients, and representative payees. But if you want to know your new benefit amount sooner, you can securely obtain your Social Security COLA notice online using the Message Center in your personal account.

You can access this information in early December, prior to receiving the mailed notice. Benefit amounts will not be available before December. Since you will receive the COLA notice online or in the mail, you don’t need to contact us to get your new benefit amount.

If you prefer to access your COLA notice online and not receive the mailed notice, you can log in to your personal mySocialSecurity.com account to opt out by changing your preferences in the Message Center.

You can update your preferences to opt out of the mailed COLA notice, and any other notices that are available online. Did you know you can receive a text or email alert when there is a new message waiting for you? That way, you always know when we have something important for you – like your COLA notice. If you don’t have an account yet, you must create one by November 14, 2023, to receive the 2024 COLA notice online.

“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.

January 2024 marks when other changes will happen based on the increase in the national average wage index.

For example, the maximum amount of earnings subject to Social Security payroll tax in 2024 will be higher. The retirement earnings test exempt amount will also change in 2024.

Be among the first to know! Sign up for or log in to your personal my Social Security account today. Choose email or text under “Message Center Preferences” to receive courtesy notifications.

The SSA is preparing to apply the 2024 COLA to benefits. Here’s when you can expect the increased Social Security and SSI payments to be shipped next year.

Each year, the SSA calculates the COLA to keep up with inflation so that it doesn’t affect the purchasing power of beneficiaries. It is calculated based on changes in the Consumer Price Index for Salaried Workers in Urban Areas and Administrative Workers (CPI-W).

The calculation compares CPI-W data from the third quarter of the previous year and compares it with that of the third quarter of the current year. If there has been an annual increase in the CPI-W, the SSA increases the beneficiaries’ monthly payments.

In 2024, the COLA will be 3.2%, so SSI and Social Security payments, which include retired workers, survivors, and Social Security Disability Insurance benefits will get a corresponding boost.

Social Security and Supplemental Security Income (SSI) benefits for more than 71 million Americans will increase 3.2 percent in 2024.

Increased payments to approximately 7.5 million SSI recipients will begin on Dec. 29.

The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $168,600.

The earnings limit for workers who are younger than “full” retirement age will increase to $22,320.

The earnings limit for people reaching their “full” retirement age in 2024 will increase to $59,520.

There is no limit on earnings for workers who are “full” retirement age or older for the entire year.