More than 71 million Americans will see an 3.2% increase in their Social Security benefits and SSI payments in 2024.
The increase will be effective with payments that will be received in January. The purpose of the COLA is to ensure that the purchasing power of Social Security and SSI benefits is not eroded by inflation. Federal benefit rates increase when the cost of living rises. On the WHOW Morning Show Thursday, Jack Myers with Social Security told Regional Radio the measurement of cost of living comes from the Department of Labor’s Consumer Price Index for Urban and Clerical Wage Earners - or CPI-W.
The 3.2% COLA was computed by comparing the average CPI-W from the 3rd quarter of last year - 2022 - or the last year there was if there is an increase in the average CPI-W, the increase is the next year’s COLA and the average CPI-W for the 3rd quarter of 2023 increased 3.2% compared to the 3rd quarter of 2022.
According to Myers, when the Social Security COLA is announced, people often wonder about the Medicare Part B premium since it is deducted from the Social Security payment. Medicare announced that the standard Part B premium will be $174.70 in 2024, up from 164.90 in 2023. He stresses there is no need to call to check on this increase.
Your account had to have been established by November 14 to get this year’s COLA notice within your Message Center, but if you missed that deadline, there are still many other advantages to having your own account. Create one today at www.ssa.gov/myaccount. You can even sign up for text or e-mail alerts when a new notice arrives in your Message Center.
To learn more about the 2023 COLA, visit www.ssa.gov/cola