(news nation) — As January approaches, tens of millions of older Americans are expecting a small increase in their Social Security benefits with the introduction of a new cost of living adjustment (COLA).
The 2024 Social Security COLA is 3.2%.
The 3.2% price increase is aimed at reducing the impact of higher prices on essential goods such as food, fuel and a range of goods and services.
When will I receive my payment?
Recipients will be able to see their COLA increase on their monthly checks starting in January 2024.
Checks will be paid on the scheduled Wednesday of each month. The schedule depends on your date of birth and when you started receiving Social Security benefits.
Here are some additional dates to keep in mind.
- Wednesday, January 3: Benefits for people who started receiving payments before May 1997
- January 10th (Wednesday): Payment to recipients whose date of birth is between the 1st and 10th.
- January 17th (Wednesday): Payment to recipients whose date of birth is between the 11th and 20th.
- January 24th (Wednesday): Payment to recipients whose date of birth is between the 21st and 31st.
How much will I get on my COLA check?
The average benefit check is expected to increase by about $49 in 2024, reaching $1,907, according to government estimates. According to the agency.
For retired couples where both partners receive benefits, the average payment can be expected to increase from $2,939 to approximately $3,033.
Payments for a surviving spouse with two children are expected to increase from $3,540 to $3,653.
Surviving spouses of single seniors can expect their payments to increase from $1,718 to $1,773.
For disabled workers, their spouses, and one or more children, payments are expected to increase from $2,636 to $2,720.
Payments for all workers with disabilities will increase from $1,489 to $1,537.
See how your benefits increase by creating an account SSA.gov.
Once you verify your account, you’ll be able to get an estimate of your retirement benefits and see how your retirement benefits will change depending on your retirement age.
Recipients can also calculate their benefits themselves by multiplying the increase rate by their current monthly benefit amount.
For example, if a recipient’s average monthly Social Security check is $1,790 multiplied by 3.2% or 0.032%, the estimated 2024 COLA increases to approximately $1,847.28, an increase of $57.28.
How is it calculated?
To determine the amount of Social Security you receive, you must take into account your chosen retirement age and calculate the percentage of your highest wage earned during your top 35 years of employment.
COLA is calculated using the Bureau of Labor Statistics’ Consumer Price Index (CPI-W), which measures changes in prices based on typical consumer spending patterns.
This calculation takes into account CPI-W data from the third quarter of the previous year and compares it with data from the third quarter of this year.
However, some have called for measures that reflect older people’s spending patterns, particularly in areas such as medical, food and drug costs.
Mark Hamrick, senior economic analyst at Bankrate, emphasized the importance of considering seniors’ specific needs in COLA calculations, highlighting the increased cost of medical care and out-of-pocket costs for seniors. There is.
How does it compare to last year?
Although this is an increase, the rate of increase of 3.2% is smaller than last year’s rate of increase, reflecting a slight easing in consumer prices.
This was also the smallest increase in three years, but still well above the 2.6% average over the past few decades.
A comparison of this year’s COLA with previous years is as follows:
- January 2020: 1.6%
- January 2021: 1.3%
- January 2022: 5.9%
- January 2023: 8.7%
- January 2024: 3.2%
Increase in Medicare premiums
COLA is closely tied to the Bureau of Labor Statistics’ Consumer Price Index, which adjusts Social Security payments to changing economic conditions.
Kathleen Romig, director of Social Security and Disability Policy at the Center on Budget and Policy Priorities, said most people will see an increase in their benefits, but the increase in Medicare premiums will reduce the COLA for many individuals. It is expected that a disproportionate burden will be absorbed.
Just one policy is expected to increase by an estimated 6%, which equates to about $9.90 per month.
“Older people and people with disabilities tend to spend more of their income on health care, and health care costs are rising faster than overall inflation,” Romig said. She emphasizes that despite these challenges, individuals will still receive higher benefit checks overall.
Information about the 2024 Medicare changes is available below. www.medicare.gov.
