Social Security benefit 

Will Social Security benefit COLA increase in 2024?

PUBLISHED BY | INVESTINGDRONE | 01 DEC 2023

In 2024, the benefits of Social Security and Supplemental Security Income (SSI) for over 71 million Americans will see a 3.2% increase.

More than 66 million Social Security recipients will start receiving benefits under the new 3.2 percent cost-of-living adjustment (COLA) in January 2024. 

Cost-of-Living Adjustment

For employees under the "full" retirement age (see Full Retirement Age Chart), the upper earnings limit will rise to $22,320. (We take away $1 from benefits for every $2 over $22,320 earned.)

Social Security Retirement age 

When a person reaches "full" retirement age in 2024, the upper earnings limit will rise to $59,520. For the entire year, employees who are "full" retirement age or older, there is no cap on their earnings.

Cost-of-Living adjustment for 2024. 

Most beneficiaries will be able to access Social Security COLA notices online in December 2023 through the Message Center on their my Social Security account.

Social Security COLA notices 

The COLA's main goal is to prevent inflation from decreasing the purchasing power of Social Security and Supplemental Security Income (SSI) benefits.

History of Automatic COLA

Social Security began automatically granting yearly cost-of-living adjustments in 1975. Legislation linking COLAs to the Consumer Price Index's annual increase brought about the change (CPI-W).

Annual cost-of-living allowances 

In 2024, beneficiaries of Social Security and Supplemental Security Income (SSI) will get a 3.2% COLA.

Cost-of-Living Adjustment (COLA) 

The combined tax rate for Social Security and Medicare is 7.65%. The Social Security component (OASDI) is 6.20 percent of earnings up to the maximum taxable amount that applies.

Rate for Social Security 

When employees are assigned to work in cities with higher costs of living than their home city, some employers, like the U.S. military, occasionally provide a temporary COLA.

Other Types of COLA

This will display the updated amount that you will be paid in 2024. The amount you were given in 2022 can also be multiplied by 1 + 8.7%, or 1.087. Multiply the 2024 figures by 3.2% for 2024.

Calculate Your COLA Increase

The employer-contracted COLA percentage and the CPI-W are the two factors that affect COLA. The CPI is used to calculate inflation rates and is updated annually.

How COLA Is Determined

Supplemental Security and Social Security Cost-of-living adjustments can affect both income and expenses. The plan is to raise benefits at a rate that keeps up with inflation.

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