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The average Social Security payment will rise by more than $50 per month starting in January, thanks to the federal government’s 3.2% annual cost-of-living adjustment, or COLA. A 3.2% increase in the average Social Security check—about $1,706 in August 2023, the latest data available—would raise that monthly payment to $1,761, a $55 bump.
The yearly change in Social Security retirement benefits and Supplemental Security Income (SSI) payments is intended to help the nation’s estimated 67 million beneficiaries keep pace with inflation. The Social Security Administration, or SSA, adjusts the COLA to reflect changes in urban workers’ consumer prices. But this year, the 3.2% boost lags the current inflation rate, which was 3.7% as of September, according to the Bureau of Labor Statistics.
This year’s increase is considerably lower than last year’s 8.7% raise. That jump, calculated in 2022, reflected the inflation rate at the time. The highest COLA increase ever came in July 1980, when the SSA catapulted the benefit amount 14.3% amid soaring inflation.
When Will The 2024 Social Security Benefits Start?
The higher Social Security and federal SSI payments will appear no later than January 2024. SSI payments normally go out on the first of the month, but due to the New Year’s Day holiday, January’s SSI benefit will be paid out at the end of December.
You’ll be able to learn your new benefit amount earlier in December if you have an online account with Social Security.
How Is The COLA Calculated?
The Social Security Act requires that COLAs track with hikes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), or so-called blue-collar workers who live in urban areas. The CPI-W is calculated on a monthly basis by the Bureau of Labor Statistics.
