The Cost-of-Living Increase…3.2% In January 2024
More than 71 million American Social Security recipients will enjoy a 3.2% increase in 2024. This inflation driven rise in benefits will result in a bump in monthly retirement benefits of more than $50.
The maximum benefit for a retired worker who claims at full retirement age will go up to $3,822 per month in 2024, up from $3,627 per month in 2023. The average benefit for all retired workers will be $1,907 in 2024, up from $1,848 in 2023, according to the Social Security Administration.
Social Security benefits increase when the cost-of-living rises, as measured by the Department of Labor’s Consumer Price Index (CPI-W). The CPI-W moves upward when inflation increases prices for goods and services, leading to an escalated burden on the family budget.
The Cost-Of-Living adjustment (COLA) helps to offset these costs. This year’s adjustment is less than the 8.7% increase last year, which reflects a cooling of the U.S. inflation rate in 2023.
The Social Security Administration will mail COLA notices throughout the month of December to retirement, survivors, and disability beneficiaries, SSI recipients, and representative payees.
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