When we get closer to the year 2024, one of the most important things that people who receive Social Security payments are thinking about is the projected rise in benefits that will be brought about by the Cost-of-living adjustment (COLA). It is anticipated by specialists that there will be a big increase in benefits, with estimates ranging from 17.6% to 17.8%.
This increase may have a huge effect on the millions of Americans who are dependent on these payments. In the following paragraphs, we will discuss the specifics of this anticipated rise, the qualifying requirements, the workings of the cost-of-living adjustment (COLA), some helpful hints for optimizing benefits, and what to anticipate in the future. To have a better understanding of how these revisions will impact beneficiaries, let’s get started.
17.6%-17.8% Social Security Benefits Increase 2024
Since the time for the COLA Calculation is drawing near, experts and economists are keeping a close check on the inflation statistics to determine the amount of the increase in social security benefits. The cost-of-living adjustment (COLA) rise for 2025 will be computed in October, but it will take effect on January 1st of that year by the time it is implemented.
The residents are very excited about the two increasing percentages, which are 17.6% and 17.8% respectively. Some individuals anticipated that this would be the increase for the next year, but to their surprise, this is not the case.
Both of these percentages represent the rise in the volume of consumer products throughout the last couple of years. The cost-of-living adjustment (COLA) for the prior year is 8.7%, and residents believe that this COLA ought to be doubled to 17.4% so that citizens might get retroactive benefits; nevertheless, this choice is not adopted.
In the previous year, inflation was rather high, which increased the payments provided by social security. However, the cost-of-living adjustment (COLA) for this year is 3.2%, which indicates that inflation is fast falling. With the cost-of-living adjustment (COLA) calculation for the next year, this tutorial is all about the 17.6%-17.8% Social Security Increase in 2024.
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Overview of 17.6%-17.8% Social Security Benefits Increase 2024
| Title | 17.6%-17.8% Social Security Benefits Increase in 2024: Check Eligibility & COLA Increase |
| Year | 2024 |
| Country Name | USA |
| Category of the Post | Finance |
| Official Web Page | www.bls.gov |
17.6% Increase Sheet in Social Security Benefits in 2024
Since the beginning of the last couple of years, the average growth in consumer goods has been 17.6%. All of the items that are produced by the economy are included in this average consumer goods. The term “consumer goods” encompasses a wide range of products, including food items, energy commodities, and other things. The following is a breakdown of the rise according to the type of the items:
| Item Category | July 2020-21 | July 2021-22 | July 2022-23 | July 2023-24 |
| All times | 5.4% | 8.5% | 3.2% | 2.9% |
| Food | 3.4% | 10.9% | 4.9% | 2.2% |
| Energy | 23.8% | 32.9% | -12.5% | 1.1% |
| All items excluding Food and Energy | 4.3% | 5.9% | 4.7% | 3.2% |
Benefits Sheet from Social Security will increase by 17.8 percent in 2024.
This rise of 17.8 percent represents the cost-of-living adjustment for the three years before this one. By adding the cost-of-living adjustments from the two years before to this one, as well as the COLA for this year, we arrive at this %. Let’s look at the math that was done here:
| COLA | Calculation | |
| Year | COLA | Add all these COLA = 3.2% + 8.7% + 5.9% = 17.8% |
| 2024 | 3.2% | |
| 2023 | 8.7% | |
| 2022 | 5.9% | |
Tips to Help You Get the Most Out of Your Social Security Benefits in 2024
Because of the significant rise in Social Security payments that will take effect in 2024, beneficiaries have several options available to them that will allow them to make the most of their financial advantage. The following are some important pointers:
- Delay Claiming Benefits: If it is feasible to do so, waiting for the claiming of Social Security benefits until full retirement age (or even until age 70) might result in a greater monthly payout. Your advantages might be greatly compounded over time if you postpone taking advantage of the cost-of-living adjustment.
- Prepare yourself for taxes: Depending on your level of income, your Social Security payments can be subject to taxation. Collaborate with a financial counselor to reduce the amount of taxes that are owed on your enhanced benefits.
- Because the expense of medical treatment is on the rise, it is of the utmost importance to make certain that your Medicare or private insurance policies are tailored to meet your specific requirements. There is a possibility that the additional monies from the benefit increase will provide an opportunity to examine and modify coverage.
- When it comes to budgeting for inflation, inflation may continue to climb in 2024, notwithstanding the 17.6%-17.8% increase. It will be easier for you to maintain your financial stability over the long run if you create a budget that takes into consideration the potential for future inflationary pressures.
The use of these techniques, in conjunction with prudent financial planning, may assist in ensuring that the rise in 2024 offers the best potential benefit to your overall financial health.
For whom is the Social Security Benefits Increase of 2024 eligible to be implemented?
In 2024, the regulations governing eligibility for the rise in Social Security benefits will remain the same as they were in prior years. The 17.6%-17.8% adjustment will be made automatically to the payments of persons who are presently receiving Social Security benefits. This includes retired workers, disabled individuals, surviving spouses and children, and dependents of workers who are qualified for disability benefits.
The Federal Insurance Contributions Act, sometimes known as FICA, stipulates that to be eligible for Social Security benefits, an individual must have paid at least forty credits via payroll taxes. Employment and payments to the Social Security system are how these credits are accumulated. The cost-of-living adjustments (COLA) are also available to those who are qualified for Supplemental Security Income (SSI), which is a program that is distinct from the ordinary Social Security program. On the other hand, because of the differing methods of computation, SSI beneficiaries could have a lesser total percentage rise.
Even though the vast majority of Social Security recipients will benefit from the rise, it is essential to confirm your eligibility if you are going to be filing for disability benefits or are getting close to retirement age. The beginning of the COLA-adjusted payments might be delayed if the application for benefits is delayed or if you make a mistake.
Future updates
If we go beyond the year 2024, it is impossible to determine whether or not such significant rises in the cost of living will become the norm. Extraordinary inflation brought on by interruptions in supply chains increases in energy prices, and other events related to the global economy are mostly responsible for the rise that will occur in 2024. There is a possibility that future cost-of-living adjustments may revert to the more common range of 1% to 5% if inflation continues to decrease in the years to come.
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Nevertheless, politicians and economists are contemplating the possibility of modifying the cost-of-living adjustment (COLA) formula to more accurately reflect the spending habits of retirees, particularly in areas like healthcare and housing. The implication of this is that future years may see more targeted hikes, even if overall inflation rates remain relatively stable.
Calista Embry is a finance journalist who graduated from Johns Hopkins University. She has a passion for writing and researching the impact of finance on social life.