When do they officially announce the increase in Social Security benefits 2024?

2023-10-12 04:08:51

The Social Security Administration (SSA) sends different benefits monthly, including those of retired workers and survivors (children, spouses, widows, widowers or parents of a deceased beneficiary). In addition, it also pays for disabilities, among which are Social Security Disability Insurance (SSDI) and the Supplemental Security Income (SSI).

These benefits increase each year thanks to the adjustment for cost of living (COLA), which is calculated and applied to payments so as not to affect the purchasing power of the beneficiaries. This is linked to the annual increase in the Consumer Price Index for Salaried Workers in Urban Areas and Administrative Workers (CPI-W)

The calculation of COLA covers from the third quarter of the previous year to the third quarter of the current year; that is, based on CPI-W data for July, August and September of both years. In 2023, the difference between 2021 and 2022 was 8.7%, so Social Security payments increased this percentage. For now, there is no current figure on how much more it could increase next year. What is public is the exact date it will be announced.

On this date the increase in Social Security benefits is officially announced

When do they officially announce the increase in Social Security benefits?

The COLA is announced once the CPI-W data, corresponding to July, August and September, are available for calculation. Therefore, the official COLA for 2024 will be announced in October 2023.

If last year’s announcement is taken into account, the cost of living adjustment for next year could be announced this October 12, the day on which the Bureau of Labor Statistics (BLS) publishes the report of the Consumer’s price index.

Likewise, it would come into effect in December and would be applied for the first time in Social Security and SSI payments in January 2024.

How much could COLA 2024 be?

As we mentioned above, there is no exact amount of the percentage that will increase, but there are estimates and predictions from specialists. The most recent is from The Senior Citizens Leagueone of the largest nonpartisan seniors groups in the United States, who note that Social Security cost-of-living adjustment for 2024 could be 3%. This estimate is based on consumer price index data from last July.