Social Security Recipients Are Getting A Boost To Their Monthly Benefits

72 million people throughout the United States receive Social Security benefits.

Social Security is a social insurance program consisting of retirement, disability and survivor benefits. 

To qualify for most of these benefits, most workers pay Social Security taxes on their earnings and the claimant’s benefits are based on the wage earner’s contributions. 

Otherwise, benefits such as Supplemental Security Income (SSI) are given based on need.

The Social Security Administration operates the largest government program in the United States.

In fiscal year 2022, the agency was expected to pay out a total of $1.2 trillion in Social Security benefits to 66 million individuals.

 That same year, the SSA expected to pay $61 billion in SSI benefits to 7.5 million low-income individuals in FY 2022.

Now, a new year is on the horizon, and the cost of living is only getting higher and higher.

Because of 2024’s arrival, those who receive Social Security benefits are set to get a bump in accordance with the higher cost of living.

The annual cost-of-living adjustment, or COLA, for 2024 has been set for a 3.2% bump–which is the smallest increase in three years.

The smaller increase is because the Social Security Administration bases its annual adjustment on the inflation rate, which has been rapidly slowing down, according to CBS News.

Recipients in 2023 received a historic 8.7% increase to keep up with the biggest rate of inflation in four decades. 

While the new COLA increase will take effect with the December benefits, those payments will reach most recipients in January, according to the Social Security Administration. 

With the increase, the agency said the average benefit check will increase $49, rising to $1,907 from $1,858.

The new COLA will go into effect in January for most Social Security recipients, with the notable exception of Supplemental Security Income (SSI) recipients, who will receive their payments early this year.

The benefits hike for the nation’s 7.5 million SSI recipients will begin on December 29.

If you started claiming Social Security before May 1997 or if get both Social Security and SSI benefits, you’ll get the new COLA in a Dec. 29, 2023 check and your Social Security payment on January 3.

If your birthday falls between the 1st to the the 10th day of your birth month, you’ll get your first benefit check with the new COLA on January 10. 

 If your birthday falls between the 11th to 20th day of your birth month, you’ll get your higher payment on January 17.

 If your birthday falls between the 21st to 31st of your birth month, your benefit check will reflect the new COLA on January 24.

Social Security began sending letters to recipients in early December to alert them of their new benefit amount.

How much you’ll get in your check depends on your current benefit level, which is based on your earnings while working and other factors, such as your age when you first claimed Social Security.

2024’s benefit increase is higher than most years, but still lower than what seniors received in 2022 and 2023.

2022 saw in increase of  5.9%, which was the first year in nearly a decade that such a high increase was given.

From 2014 until 2021, the increase remained between 0 and 2%, with the exception of a 2.8% increase in 2019.

In 2024, the earnings-test limit is also rising, meaning you have even more opportunity to earn money without having any benefits withheld.

This year, the earnings-test limit is $21,240, or $56,520 for those reaching FRA. Next year, it’s rising to $22,320, or $59,520 for those reaching FRA.

Seniors who continue to earn money from a job are allowed to collect Social Security at the same time–and now, they can earn more without worrying about their benefits being at risk.