Social Security Recipients to Receive Increased Benefits in 2024
Social Security beneficiaries can expect a boost in their benefits check next year. A cost-of-living adjustment will go into effect, resulting in retirees and other Social Security recipients receiving more money. However, it’s essential to know when these bigger payments will start to arrive to effectively plan for the additional funds.
The increase in Social Security benefits is set at 3.2% for 2024. This adjustment is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which reflects the rise in the price of goods and services. The purpose of this adjustment is to ensure that Social Security recipients do not lose purchasing power due to inflation, commonly known as a cost-of-living adjustment.
The first payment for the 2024 benefits year will include the extra money. Supplemental Security Income (SSI) beneficiaries will receive their COLA increase starting with the December 29, 2023 payment. On the other hand, those receiving retirement benefits will see the additional funds in their first January payment after the New Year.
Social Security is actively notifying beneficiaries about the upcoming benefits increase. COLA notices will be mailed throughout December. However, recipients should not worry if they do not receive their notification immediately, as these notices are sent at different times. Social Security advises against contacting them until January if a notice does not arrive.
For those who prefer not to wait for a mailed notice, the document will be available online on the My Social Security website starting in early December. Users can log in and view the exact amount of their new benefit after the COLA takes effect, avoiding any surprises.
Beneficiaries can also estimate their own benefits increase by multiplying their current Social Security payments by the 3.2% increase. If applicable, they should subtract the increase in Medicare Part B premiums, which will be implemented in 2024. Standard premium payers for Medicare Part B will experience a $9.80 monthly charge compared to the previous year, as premiums are rising. These Medicare payments are typically deducted directly from Social Security checks.
While the prospect of receiving a larger check may be exciting, it’s important to remember that a COLA is intended to maintain buying power in the face of rising prices. Therefore, it is crucial to create a budget and use the additional funds wisely to cover necessary expenses adequately.