Monday, December 11, 2023

Why will the 2024 COLA increase affect my Social Security benefits?

Every year the Social Security Administration (SSA) announces what the cost of living adjustment (COLA) will be, which will be applied to monthly payments so as not to affect the purchasing power of beneficiaries. The increase affects the benefits of retired employees and survivors; i.e. children, spouses, widows, widowers or parents of a deceased pensioner. This also applies to disability benefits, which also include the disability program. Supplemental Security Income (SSI) and that Social Security Disability Insurance (SSDI).

The cost of living adjustment is not a fixed amount. The SSA calculates the required increase based on changes in the Consumer Price Index for Urban and Administrative Employees (CPI-W). This calculation extends from the third quarter of the previous year to the third quarter of the current year; that is, July, August and September. Inflation for these three months is added and averaged and then compared to the average for the third quarter of the previous year. The percentage difference between the two is the COLA amount.

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Although the Social Security Benefits They are the hardest hit by the increase in COLA benefits, as many people receive them month after month. The truth is that other services are also affected. Here we tell you.

What programs other than Social Security are affected by COLA 2024?

  • Occupational disability insurance benefits
  • Clothing Purchase Subsidy (Eligible Veterans)
  • Dependency and Compensation Compensation (DIC) – for experienced survivors
  • SNAP benefits: Help with grocery shopping

The first beneficiaries to receive the COLA are those receiving Supplemental Security Income, as these checks are mailed on the first of each month. However, because January 1 is a federal holiday, the checks will be mailed in late December. Finally, this Social Security recipients Your first COLA checks will be issued in January.

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Nation World News Desk
Nation World News Desk
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