Understanding SSA 2024 COLA Increase: What you need to know

by April L. Roberts | Jan 16, 2025

Understanding SSA 2024 COLA Increase: What you need to know

by April L. Roberts, EJD EDPNA

The Social Security Administration (SSA) recently announced a Cost-of-Living Adjustment, or COLA, increase for 2024. This adjustment aims to help Social Security beneficiaries keep pace with rising living expenses. Here’s a quick look at what COLA is, why it matters, and how it impacts Social Security benefits.

What is COLA?

The Cost-of-Living Adjustment, or COLA, is a change made to Social Security and Supplemental Security Income (SSI) benefits to account for inflation. In simple terms, as the cost of goods and services goes up, the SSA adjusts monthly benefit payments to help beneficiaries maintain their purchasing power. The adjustment is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of price changes in goods and services.

How Much is the COLA 2024 Increase?

For 2024, the SSA announced a 3.2% increase in benefits. This increase is also referred to as “SSDI/SSI raise”. While this year’s increase is smaller than last year’s 8.7% hike (one of the highest in decades), it is still a substantial adjustment aimed at helping beneficiaries cope with rising expenses. This increase will reflect in beneficiaries’ January payments.

Who Will Benefit?

The COLA increase applies to all Social Security recipients, including retirees, disabled individuals, and survivors receiving benefits. It also affects SSI beneficiaries, who receive a monthly income supplement intended for low-income individuals with limited resources.

Why is COLA Important?

As inflation impacts day-to-day expenses, COLA helps protect beneficiaries from losing purchasing power over time. This adjustment is significant for those on a fixed income, like retirees and individuals with disabilities, who rely heavily on these benefits to cover essentials like housing, groceries, and healthcare.

How Will This Affect You?

SSDI/SSI and retirement beneficiaries should see an increase in their monthly checks starting in January 2024. The SSA will send notices to recipients in December with specific details on how much their payments will increase. You can also view your adjusted benefit amount online through your “my Social Security” account.

What Should You Do?

Check Your New Benefit Amount: In December, review the SSA’s notice to confirm your new payment amount, or increase.
Update Your Budget: With a slight increase, you may want to revisit your budget and allocate funds where they’re most needed.
Stay Informed: COLA adjustments can vary each year, depending on economic factors. Keeping an eye on these changes can help you plan for the future.

The COLA increase, otherwise known as retirement or SSDI/SSI increase, is one way the SSA works to ensure that Social Security benefits provide ongoing support amid changing economic conditions. By understanding how these adjustments work, you can better prepare for changes in your benefits each year. Here at Aaria Connect, we help individuals get approved for SSDI/SSI benefits. We will even help you apply for your early retirement while we fight for your SSDI benefits if you are eligible to do so! Contact us to speak to one of our advocates to learn more.