Social Security Administration Announces 3.2% Cost of Living Adjustment for 2024 Benefits

The Social Security Administration announced on Thursday morning that the cost of living adjustment (COLA) for Social Security benefits in 2024 will be 3.2%, a much smaller increase than the 8.7% increase seniors and other beneficiaries received in 2021. This is still above the historical norm for the annual adjustment, which has averaged 2.6% over the past two decades.

The average retirement benefit will increase by about $50 a month, beginning in January. This will boost the typical monthly payment to $1,907 from this year’s $1,858, the agency said. Kilolo Kijakazi, acting commissioner of Social Security, said, “Social Security and SSI benefits will increase in 2024, and this will help millions of people keep up with expenses.”

The COLA is calculated based on an average of the inflation readings for the months of July, August and September. This year, the inflation rate was higher than usual due to the economic effects of the COVID-19 pandemic. However, with inflation still far from its pre-pandemic levels, seniors and other recipients may be at risk of losing financial ground with the smaller adjustment, experts said.

The Social Security Administration said that the COLA increase is intended to help seniors and other beneficiaries keep up with the rising cost of living. The agency also noted that the COLA increase is just one of the ways that Social Security benefits are adjusted to help keep up with inflation. Other adjustments include changes to the tax rate and the amount of wages subject to Social Security taxes.