By Marielis Acevedo
04 Oct 2023, 08:08 AM EDT
In less than two weeks, on October 12, the Social Security Administration (SSA) will announce the new COLA (Cost of Living Adjustment) figure that will be reflected in the checks of retirees and other groups who benefit from the programs. that office starting in 2024.
Historically, Social Security confirms the COLA amount in mid-October when the U.S. Department of Labor releases September inflation figures.
Social Security needs that information to use when calculating the amount of the increase through the measure known as the Consumer Price Index for Urban Wage Workers and Administrative Workers (CPI-W). The CPI is published by the Bureau of Labor Statistics (BLS) of the Department of Labor.
To arrive at the final amount of the COLA, the average inflation during July, August and September of the current year and the levels of the same quarter but last year are compared.
According to the COLA section on the Social Security website, some 70 million recipients of Social Security and the Supplemental Security Income (SSI) program will benefit from the new increase.
SSI provides monthly payments to people with disabilities and older adults who have little or no income or resources.
The first to receive the checks with the increase will be those who benefit from SSI (more than 7 million) at the end of December. The rest or approximately 65 million will see their first payments in January.
Estimates from The Seniors Citizens League (TSCL) indicate that the COLA increase will be 3.2% in 2024, a figure well below the 8.7% that is reflected this year in the checks of Social Security beneficiaries.
“The purpose of the COLA is to ensure that the purchasing power of Social Security and Supplemental Security Income (SSI) benefits are not eroded by inflation. It is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Administrative Workers (CPI-W) from the third quarter of last year, a COLA was determined until the third quarter of the current year. If there is no increase, there can be no COLA,” the SSA explains on the website.
Keep reading:
3.2% COLA increase in Social Security checks is not enough for retirees’ monthly expenses, The Senior Citizens League survey reveals
COLA in Social Security checks: the two positive points of the estimated increase of 3.2% for 2024
Medicare Part B premiums will increase a minimum of $10 in 2024; What impact will it have on the new COLA on Social Security checks?