The Social Security 2021 cost of living adjustment (COLA) went into effect January 2021, with a 1.3% increase for those receiving benefits. For those who have been eagerly awaiting a percentage increase in the 2024 COLA, the wait is almost over. According to the Social Security Administration, the COLA for 2024 will kick in in December 2023.
The Social Security COLA is based on the consumer price index and is intended to help seniors and disabled individuals adjust to the continually rising costs of living. Part of the current COLA adjustment includes an increase in payments for those receiving Supplemental Security Income, a program designed to offer additional support to those with low or limited earning abilities.
It’s important to note that whether or not you receive an increase in benefits is completely dependent upon the consumer price index. Each year, the Social Security Administration examines the index to set the rate of the COLA. An increase above 1.3% is possible, however, an increase below 1.3% is just as likely.
Those wishing to keep an eye on the COLA for 2024 are encouraged to follow news and announcements from the Social Security Administration. The most up-to-date information regarding any potential percentage raises or changes to the cost of living can also be found on their website.
Although only conjecture at this time, financial experts and economists generally assume that the COLA adjustment for 2024 will be positive. But, as always, the final determination will be made by the Social Security Administration after they weigh the consumer price index. Until then, those living off Social Security benefits can rest assured that the 2022 and 2023 COLA adjustments will help them weather any economic or financial challenges they might face.