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The Social Security Administration announced Thursday that benefits for Social Security recipients will increase by 3.2% through 2024.
The annual cost of living adjustment in 2024 will affect more than 71 million Social Security and Supplemental Security Income recipients. These benefit adjustments are made annually to help keep benefits in line with inflation.
This change will result in an average increase in Social Security retirement benefits of $50 per month. The average worker’s monthly retirement benefit will rise from $1,848 this year to $1,907, according to the Social Security Administration.
Starting in January, most Social Security recipients will see their monthly checks increase. SSI recipients’ December checks will increase.
The 2024 benefit increase is well below Social Security recipients’ record 8.7% cost-of-living adjustment this year, the largest increase in four decades in response to record high inflation. This is also lower than the 5.9% cost-of-living adjustment for 2022.
The 3.2% increase is consistent with an estimate released last month by the Senior Citizens Alliance, a nonpartisan seniors group.
The Social Security cost-of-living adjustment is calculated based on the Consumer Price Index for Urban Wage and Civilian Workers (CPI-W). The third quarter numbers are added up and averaged, then compared to last year’s third quarter average. If there is an increase, it determines the size of the cola.
The 2024 adjustment comes as many retirees are still struggling with higher prices.
“Retirees can get a little rest at night knowing their Social Security checks will soon increase to help them keep up with prices,” AARP CEO Jo Ann Jenkins said in a statement. The pace of growth.”
“We know older Americans are still struggling to buy groceries and gas, so every dollar counts,” she said.
Jenkins also called on Congress to take bipartisan action to keep Social Security strong. The program faces funding shortfalls over the next decade. Some proposals to fix the scheme also include changes to how annual living costs are calculated.
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