Social security COLA increase for 2024

The COLA is calculated every year by the Social Security Administration through average inflation readings
A representational image of Social Security funds.— Pixabay
A representational image of Social Security funds.— Pixabay

The cost-of-living-adjustment (COLA) is expected to observe a substantial surge in the year 2024 in the wake of rising inflation.

As per the Senior Citizens League, the inflation figures from August indicate that the cost-of-living adjustment (or COLA) for Social Security is expected to be 3.2%, which would eventually lead to Social Security beneficiaries getting another raise.

The increase for the coming year is much lower than that of the previous year, as the beneficiaries received an 8.7% COLA increase in 2023.

This increase would supplement the monthly pay of social security recipients by $57, taking the number to $1,790 for an average retired American.

However, an advocacy group member in the US claimed that the retirees would still fall short of what they actually need.

The COLA is calculated by the Social Security Administration through average inflation readings for the third quarter of the year —July, August and September— and the bigger the difference between COLA and the inflation rate for the previous year gets, the higher the COLA increment for next year.

Particularly, it's actually based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) published by the Bureau of Labor Statistics in the U.S.

Expected rise in COLA in 2024

The table below categorically comprises the average payments to the social security beneficiaries of different groups for the year 2024.

CategoryAverage Monthly IncreaseAverage total amount
Retiree$58$1,885
Worker with disabilities$47$1,530
Senior couple$95$3,067
Widow(er)$55$1,759
Widow(er) with two children 
$113$3,633

When will the COLA increase for 2024 come into effect

The increase in COLA for the year 2024 will make its way to the monthly checks in January 2024. The checks to the recipients will be delivered on scheduled Wednesdays every month.

Moreover, the date of your paycheque receiving depends on your date of birth and when you started receiving Social Security funds.