Social Security COLA Announced as 3.2% for 2024
Oct 13, 2023
Monthly
Social Security checks will increase about $59, a lower increase than in recent
years but still larger than the 20-year average.
The cost-of-living adjustment for
2024 will be 3.2% for more than 71 million Americans who receive Social
Security, the Social Security Administration announced Thursday.
Retirees’ monthly payments will therefore rise by an average of
about $59 to an estimated average of $1,907, starting in January 2024, which matched recent
projections. Increased payments to approximately
7.5 million
Supplemental Security Income recipients will begin on December 29, 2023.
The adjustment was significantly lower this year than in recent
years due to reduced inflation. Recipients had received increases of 8.7% for
2023 and 5.9% for 2022. The average adjustment over the last 20 years was 2.6%.
The maximum amount of earnings subject to the Social Security
tax will also increase to $168,600.
The COLA is based on inflation data from the year’s third
quarter, published Thursday
morning by the Bureau of Labor Statistics in the Consumer Price
Index for All Urban Consumers.
In addition to the COLA, the earnings limit for workers younger
than full retirement age will
increase to $22,320, and the earnings limit for people reaching their full
retirement age in 2024 will increase to $59,520. The SSA deducts $1 from
benefits for each $3 earned over $59,520 until the month the worker reaches
full retirement age.
There is no limit on earnings for workers who are full
retirement age or older for the entire year.
More information about the COLA, tax, benefit and earning
amounts for 2024 is available on the SSA website.
Source: Plan Adviser