Social security beneficiaries can have a scene of relive, because here is the official date for the first payment with COLA increase.
Save it and share it with other beneficiaries. It’s is official, you will be getting your first social security payments on the 31st of December.
What is COLA and Why is It Important?
For people who depend on Social Security services, they must be familiar with the term COLA, or cost-of-living adjustment. This is something worth watching, especially with the onset of the year 2024. Every year, the Social Security Administration (SSA) reviews the cost of living and changes its benefits out of the existing funding for its benefits. This particular adjustment presents itself as inflationary, whereby benefits should increase as common expenses such as food and health care increase. The objective is very clear: to ensure that your Social Security checks can still buy you the same amount of goods and services even when prices increase.
When Will the COLA Increase Take Effect?
So, when will this increase, which is the Cost of Living Adjustment (COLA), reflect on your Social Security benefits? The Social Security Administration (SSA) has clearly stated that those beneficiaries who deserve the undertaking of the cost of living adjustment (COLA) in the year 2024 will have their payments made in January 2024. This modification suits all categories of beneficiaries, including old-age pensioners, disabled individuals, and even those working beneficiaries. This increase will slightly affect your UG benefits starting next year if you are among the approximately 70 million Americans who receive Social Security every month.
How Much Will the COLA Increase Be?
At this point, it is reasonable to ask what the magnitude of the increase is. While the exact percentage will be formally given in short order, preliminary estimates expect it to be in the region of 3.2%. This is according to inflation patterns observed by the Consumer Price Index for All Urban Wage Earners and Clerical Workers (CPI-W). It is worth recognizing that this represents a very low level when compared with the 8.7% uptick in 2023, which was one of the largest increases in quite a few years, but it still counts given how rising prices have generally pinched people.
Who Benefits from the 2024 COLA?
This COLA increase will reach millions of Americans who depend on Social Security benefits. It’s not just retirees—people receiving disability benefits (SSI), veterans, and even survivors who rely on Social Security checks will benefit from this change. With inflation still influencing the cost of everything from groceries to medical care, this increase will help recipients cover those rising costs.
How Will the COLA Impact Your Monthly Benefits?
In simple words, let us tell you how and why it will impact your monthly payments. At the moment, the average benefits amount for retired Americans is roughly $1907. Taking into consideration the possible 3.2% CAHPS increase, you might expect to see close to a dollar increase in your monthly payment, which means the average check almost equals two thousand dollars. While this is not very much at first glance, over a whole year such additional income results in approximately 730 dollars. For someone living on a pension or similar source of income, every single dollar is of utmost importance these days, especially about everyday expenses, which are on the rise.
