Over 70 million Americans can expect an increase to their Social Security and Supplemental Security Income (SSI) for January 2024. The Social Security Administration has announced there will be a 3.4 percent Cost of Living Adjustment (COLA).
“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.
Social Security will begin informing recipients of their actual dollar amount adjustment in early December of this year, through USPS or through my Social Security online.
This past January 2023 saw one of the most historic increases to Social Security with a near 9 percent rise, making this year’s percentage increase seem paltry. COLA are calculated by the average growth in cost of living and is then adjusted for inflation.
Instead perhaps look at it from another perspective, last year’s 9 percent coupled with the latest 3.4 percent is compounded, so the two year increase actually exceeds the 12.4 percent, simple math might suggest.
Increases back in 2016 and 2017 were quite minuscule, as benefits don’t automatically change if inflation does not rise. The last time there was no COLA was in 2016 and before that in both 2010 and 2011.
Unfortunately, those who are covered by Medicare Part B should also be expecting a raise in premiums for the new year.
According to the Centers for Medicare and Medicaid Services, monthly premiums for Medicare Part B enrollees will increase $9.80 or 6% to $174.70 for 2024. The annual deductible has also increased by $14 to $240 for Medicare Part B beneficiaries.
SSI COLA from the last 10 Years:
January 2015 -- 1.7%
January 2016 -- 0.0%
January 2017 -- 0.3%
January 2018 -- 2.0%
January 2019 -- 2.8%
January 2020 -- 1.6%
January 2021 -- 1.3%
January 2022 -- 5.9%
January 2023 -- 8.7%
January 2024 -- 3.2%